Do you wish to apply for a loan for business in Chennai? Have you submitted the loan application and the required documents? Are you now waiting for the loan to get approved? Upon receiving the required documents and the loan application, the lender will then approve the loan if meets the satisfying criteria. It might take 2 to 3 days for the loan to get approved. Arranging the documents in order is essential to get the loan approved faster. Hence, the documents are to be thoroughly checked before the loan application is submitted.
There are a few factors that determine the timeline for the loan such as the
- Type of lender you choose
- Type of financing
- Qualification of the borrower
- How fast the documents are submitted
- Time of application of loan
Once the loan is approved, the sanction letter is sent to the customer via email or by post. The sanction letter contains details such as the loan interest rate, loan amount and EMI details. Approximately it will take 1 – 2 working days to disburse the loan after it is approved. You can then collect the cheque from the lender. There are finance companies in Chennai that will deposit the loan amount directly in the borrower’s bank account.
Business loan companies in Chennai such as traditional lenders (eg: banks) takes a long time to disburse the loan amount compared to other lenders. Based on the type of financing, the lender takes from one day to one before disbursing the loan amount to the borrower. Financing such as invoice financing gets funded quickly as it involves less risk. Other types of financing such as real estate loans and equipment financing loans take time as they require collateral. The lenders want to be assured about the collateral before disbursing the loan. Such kind of loan requires a lot of underwriting processes.
If you want to speed up your loan disbursal process, here are some of the steps to follow
- Make sure the lender you chose has a faster turnaround time
- Make sure to submit the application on weekdays and get the loan approved on weekdays as well
- If you receive any phone calls or emails from your lender, promptly answer them
- Prefer receiving finds via ACH transfer or wire transfer
- Make sure you have a business bank account ready for the loan amount to get deposited right away.
There are fewer loan types such as SBA loan takes longer time than usual to process compared to the other loan types.