How quickly can I get an emergency loan disbursed to my account?

The only constant in life is change. Unaccounted emergencies can bring about unexpected expenses, which could lead to borrowers seeking emergency loans. The release of emergency loan funds in your account becomes more important than the loan amount itself. Borrowers opt for emergency loans, often hoping for instant approval and fast disbursal.

The loan disbursal time depends on the type of lender, the process, and how prepared the applicant is with the required documents. This article explains how the disbursal timeline works, what affects it, and how you can speed up the process.

Digital vs traditional loan process
 

Emergency loans can be applied online as well as traditionally. Let us discuss them in detail:

1. Digital emergency loans
 

Several lenders like IDFC FIRST Bank offer emergency loans through app and website. These emergency loan web portals have the fastest turnaround time. The process is straightforward, saves time and gives approvals in minutes. Their system makes automated credit checks, immediate digital verification of documents, and e-KYC formalities.

Typical timelines for emergency loans online:
• Application: Typically, a few minutes to input details.
• Document upload and e-KYC: On the spot, along with the application process.
• Approval time: Ranges from on-the-spot approvals to a few hours depending on the loan amount.
• Disbursal: Often within hours, depending on lender’s processing time.

For instance, IDFC FIRST Bank’s FIRSTmoney offers instant emergency loan up to ₹10 lakh, starting at 9.99% p.a. often with 3-second approval and disbursal within 30 minutes.

2. Traditional offline lenders
 

Conventional process of acquiring a loan through banks and NBFCs have a detailed review process. Documents, KYC, application forms and signatures are verified in person at the lender’s office.

Typical timelines for traditional emergency personal loan applications:
• Application: Same day
• Document verification: Minimum 2 business days
• Approval: 2 to 3 business days
• Disbursal: Typically, within 24 hours after approval

Traditional loan disbursal is time consuming compared to online emergency personal loans.

What is disbursal in 24 hours?
 

Once the loan application is processed, the lender deposits the loan amount within 24 hours after approval of said loan. This does not include the time required for application, verification and other formalities.

Key factors affecting speed of loan disbursal
 

There are several factors that impact the disbursal process of an emergency personal loan. Some key factors are:

· Type of lender: Digital lenders process emergency loans faster due to their automated application and verification systems. In comparison, manual verification is a time-consuming process.

· Document verification: Missing documents can cause delays due to incomplete applications. Some typical documents asked by lenders include ID proof, income proof, age proof, address proof and bank statements.

· Customer credit profile: Borrowers with a good repayment history and a credit score above 750 get faster approvals and even negotiate better interest rates.

· Verification method: Digital verification and e-KYC are completed within a few minutes. Manual document verification spans for almost 2 working days.

· Banking hours and cut-off times:  If approval happens after banking hours, the loan may be disbursed the next working day.

· Loan amount requested: Smaller amounts like an emergency personal loan of ₹50,000 often get faster approval than higher amounts because assessment is simpler.

· Internal lender policies: Lenders have their own processing rules, which significantly impact how quickly loans are disbursed.

Instant disbursal with FIRSTmoney smart personal loan
 

FIRSTmoney from IDFC FIRST Bank offers instant digital emergency funding, it is designed for borrowers who need funds quickly through a fully digital process. The platform focuses on speed, no documentation, and quick disbursal, making it suitable for customers seeking emergency loans without delays.

Significant features of FIRSTmoney are:
• 100% digital application process through the bank’s app or website.
• Quick eligibility check to help borrowers understand loan options faster.
• No document upload and video-KYC, avoiding delays and branch visits.
• Faster assessment for borrowers applying for an instant emergency loan.
• Direct transfer of the approved amount to the borrower’s bank account within 30 minutes.

This is an easy and practical way to apply for emergency personal loans and attend to your emergency without waiting for several days for traditional disbursal.

Tips to speed up your emergency personal loan approval
 

Listed below are 7 practical tips for borrowers to receive quick loan approvals and disbursals:

1. Check eligibility in advance: Ensure to check the eligibility criteria while making an application. This reduces chances of rejection significantly.

2. Keep documents ready: Having digital copies of mandated documents speeds up online application processes, especially with lenders offering instant emergency loan facilities.

3. Apply during working hours: Applications submitted during banking hours are processed faster because verification and fund transfer can happen only in that time frame.

4. Avoid multiple applications: Submitting several loan applications at once may delay processing and can cause temporary reduction in your credit score risking loan application rejection.

5. Use digital lenders for urgent needs: Digital loans are faster and less time consuming, sometimes loans are approved within minutes.

6. Ensure consistent details: Make sure your application details match your KYC documents to avoid verification delays.

7. Maintain a healthy credit profile: Borrowers with a good repayment record and a credit score above 750 often receive quicker approvals and can also negotiate interest rates for overall loan cost reduction.

Consider FIRSTmoney App for Faster Emergency Loan Process
 

The IDFC FIRSTmoney Smart Personal Loan provides a unique combination of excellent features. Some of these include a 100% digital process, quick approval and disbursal, repayment flexibility, access to multiple on-demand loans and zero foreclosure charges.

Borrowers looking for a convenient emergency personal loan disbursal must consider a digital lender like IDFC FIRST Bank, through its FIRSTmoney offering. It offers a straightforward way to access loans online with faster verification and quick disbursal. You can also avail multiple on-demand loans directly from the app, without reapplying from scratch.