How Long Does it Take for a Personal Loan to Get Approved in India?
How Long Does it Take for a Personal Loan to Get Approved in India?
It may be like waiting for a personal loan approval as you wait for a response to your "urgent" email. You pace the floor and keep checking your inbox, asking yourself, “How long is this going to take?”
Depending on where you apply and your level of readiness, the Indian personal loan approval procedure might be surprisingly fast—or painfully slow. Here's everything you need to know about the application process, including how long it takes, what factors affect it, and how to speed it up.
So, What’s the Usual Timeline?
The short answer: it depends.
The approval process for an application submitted through a typical bank might take anywhere from two to seven business days. Banks often have more formal procedures, several levels of verification, and yes, some traditional paperwork. In contrast, NBFCs (Non-Banking Financial Companies) accept and release funds more quickly, often within 1 to 3 working days.
Now here’s where things get interesting—digital loan apps. With fintech lenders like KreditBee, CASHe, or Nira, approvals can happen within minutes, and funds can land in your account within hours. It’s that fast.
But Why Does the Timing Vary So Much?
It’s not just about the lender. The truth is, you play a big role in how fast your loan gets approved.
First, let's talk about your credit score. Lenders already view you as trustworthy if your score is higher than 750, making the approval procedure simple. The lender can take longer to examine your financial history or perhaps request more documents if it is less than 650.
Then there’s your documentation. Missing or mismatched documents can delay everything. If your Aadhaar says one address and your salary slip says another? That’s a red flag. Lenders need clear, consistent information before moving forward.
And finally, the type of lender matters. A digital-first lender might use AI and machine learning to evaluate your loan eligibility in seconds. Meanwhile, a bank officer could still be sipping tea while your file waits in the queue.
If you’re already a customer with the bank or NBFC you’re applying to, that could save you a lot of time.
Let’s say your salary comes into XYZ Bank every month. When you apply for a loan with them, they already know how much you earn, how regularly you receive your salary, and whether you’ve taken a loan with them before. That trust and data shortcut a lot of steps.
So if you’re in a hurry and you trust your current bank or NBFC, sticking with them could be the smarter move.
The Rise of the Fintech Fast Lane
Here’s the truth: digital lenders are changing the game.
Fintech platforms use automation to eliminate delays. There’s no paperwork, no manual verification, and often no human intervention at all. You upload your PAN, Aadhaar, salary slip, and bank statement—usually in PDF format—and their algorithm does the rest.
If everything checks out, your loan gets approved within minutes and the money is in your account before you even finish your lunch.
Now, sure, digital lenders might charge slightly higher interest rates compared to banks. But for many people, that speed and convenience are totally worth it—especially in an emergency.
A Real-Life Example (Because Everyone Loves a Story)
Let’s say Priya, a 30-year-old software engineer in Bangalore, needs ₹1.5 lakhs for a last-minute medical emergency. She uses a popular loan app, uploads her documents, and completes her eKYC.
Within 12 minutes, she gets a notification: “Loan approved.” The funds hit her account before she even makes it back from the pharmacy.
Now contrast that with her friend Aman, who applies through his bank. He goes to the branch, fills out forms, photocopies documents, and waits. Even though he has a good profile, the money takes 4 days to come through.
Same country. Same need. Totally different timelines.
Want to Speed Things Up? Here’s How
If you’re hoping to get your loan approved quickly, there are a few things you can do.
First, maintain a healthy credit score. Pay your EMIs and credit card bills on time. Avoid applying for multiple loans at once. Lenders check your credit behaviour, and if it’s responsible, your loan gets green-lit faster.
Second, keep your documents in order. Make sure your Aadhaar and PAN are linked and updated. Have your last three salary slips, three to six months’ bank statements, and any required ID/address proof ready in digital format.
And third—go digital if you can. Apps and online platforms are designed to make the process faster. Unless you're hunting for the lowest possible interest rate, a digital loan is your best bet for instant cash.
So, How Long Does It Really Take?
To sum it up:
Digital Loan Apps: Can approve and disburse within minutes to 24 hours.
Of course, your credit score, documents, and even the time of day you apply can make a difference. But in general, if you’ve done your homework, you won’t be waiting long.
Final Thoughts: You’re More in Control Than You Think
Applying for a personal loan in India used to be a slow, paperwork-heavy process. But now? You’ve got options. You can choose speed, convenience, or low interest—whatever fits your situation.
The key is to be prepared. Keep your financial life clean, your documents ready, and your eyes open for trustworthy lenders. Whether you need the money today or next week, there's a way to make it happen on your timeline.
So next time someone asks, “How long does it take for a personal loan to get approved in India?”—you’ll know the answer, and you’ll know how to speed it up.
Still not sure where to begin or which lender to believe? Here's where CredBuddha can help. By using a 100% digital method to match you with the best lenders depending on your profile, we streamline the whole personal loan application process. There would be no paperwork, no anxiety, and no time wasted seeking permissions that might never arrive.
CredBuddha lets you get your loan authorised in as little as 10 minutes with its streamlined approval process, low paperwork requirements, and real-time eligibility checks. We are clever, safe, and completely hassle-free, and we can help you whether you need quick cash or better loan conditions. Ready to ensure a seamless borrowing experience? Go to www.credbuddha.com and begin your journey right now.
