How is the personal loan amount disbursed?

After the bank approves your loan application, it gives you a sanction letter. This is followed by the loan disbursal either by cheque or demand draft (DD). Typically, you will receive the sanction letter and the cheque/DD together.

Starting from the date of application, the bank may disburse the money to you in 3-4 working days - if you have provided them all the required documents and completed all the formalities promptly. So, keep all the relevant documents at hand to facilitate quick disbursal.

The loan disbursal process may be quicker for some banks compared to the others. Private and foreign banks use external agencies such as direct selling agents (DSAs) to quickly process the loan by coming to your home or office. In the case of most public sector banks, you have to personally visit the local branch to process the loan.