How does the Disbursal Process Works for a Personal Loan?
Personal Loans are more in demand than they ever were. Thousands of earning individuals use Personal Loans for a number of requirements, as they are convenient, fast, and simple. Many borrowers apply to organization such as Bajaj Finserv where you can apply for Personal Loan online. The loan provider never asks too many questions and you can avail a Personal Loan from the comfort of your home. There is still confusion among many borrowers on what happens after Personal Loan disbursal. This is what you’re going to read now.
How You Get Your Money
The Personal Loan disbursement time is usually under 24 hours of your application. When you’ve applied for a Personal Loan, banks tend to provide a cheque or a demand draft that you will either collect physically from the branch or will be couriered to you. Sometimes the money can also be transferred to your nominal account through NEFT (National Electronic Funds Transfer).
The Disbursed Amount
The actual amount of money that is disbursed varies according to your loan agreements. The amount will depend on the kind of loan you apply for and has been approved, the processing fee deduction, any upfront instalment that you have agreed to making, and service tax. You can apply for a Flexi Loan from financial organizations such as Bajaj Finserv that allow you to prepay with idle funds. In case of a top up Personal Loan, the amount of money that is disbursed will be larger than the money that was calculated for the existing loan.
After you have received your funds, your lender will send you a confirmation email stating that your loan was a success. The lender will also give you an account of your personal eligibility and documents with a welcome kit. Along with this you will also receive details regarding the loan agreement, a timetable that shows you when your EMIs are due, the Personal Loan interest rates, the loan tenure, and the total amount disbursed in the welcome kit. It also contains an amortization table that will keep track of your principal to interest rate ratio for your EMIs.
When you apply for your loan, you should discuss the mode of repayment with the bank. So once you get your cash, you could start repaying the bank through either post-dated cheques or Electronic Clearing Service (ECS). In case you already have an account with the bank you have received a loan from, then you will get standing instructions for periodic auto debt that will make your repayments much easier.
Also Read : A Handy Guide to Personal Loans
If you’ve applied to another bank, they will only accept your repayments from your salary account and no other. If your amount disbursement is made before the 20th of a month, then you will pay your EMI starting from the very next month. In case the disbursement is made after the 20th, then you will start paying your dues the month after the next month.
Change of Account
You need not inform the bank if you change your job, but it is crucial to immediately inform the bank if you change your salary account from which you pay your EMIs. The source of your payment will be switched to your new account so that you could continue repaying the bank without a hiccup. You can always continue using the old salary account if you please, provided it has sufficient funds constantly. In case you do not have sufficient fund and your ECS or check bounces, then the bank will penalise you. So you should be careful of that.
Transfer of Loan
You can easily switch your loan from your current lending organisation to another lender. You must notify the bank when you want to, but know that you will be charged a penalty when you do so. You could transfer to Non-Banking Financial Companies like Bajaj Finserv that accept loan transfers.
This is the basic flow of events after you have applied for a Personal Loan online or in person. It is important that you’re acquainted with this procedure as it will make the process significantly easier for you.