Personal Loan

What Happens After A Loan Is Disbursed?


Loan disbursement is the transfer of funds to a bank account. The loan disburses when the agreed-upon sum is sent into the borrower’s account and is ready for use. The funds move from the lender’s to the borrower’s account. Personal loan disbursement is much faster and easier. You can apply for a loan online and deposit it into your bank account within 48 hours or less. After the property has been checked out and all legal documentation has been completed, funds will be disbursed. Before loan disbursement, a customer must invest their relative share of the cost. The loan can be disbursed in a lump sum or instalments. It depends on the needs of the development authority, society, or private builder. A disbursement is a completed payment that has been recorded as such. It has been deducted from and credited to the payer’s account.

Main steps in the disbursement of a personal loan

There are several steps involved in the entire disbursement process. The following are the main steps in the disbursement of a personal loan:

Personal Loan Processing

Your personal loan application is usually approved within 24 hours to a week. When it passes, banks usually issue a check you can pick up at the branch or mail it to you.

Personal Loan Payment

The bank is contemptuous of the data you provided. It will approve your personal loan, and loan disbursement will begin.

The amount disbursed is fixed by the loan agreement as well as other factors such as:

Loan Type

Processing fee

Payment in advance

Service tax

Mode of Payment

A personal loan is disbursed within 24 hours of the application being approved. The bank issues a check or a demand draft. You can either courier or physically collect from the branch. In rare cases, the loan amount may be credited to your bank account via NEFT transfer by the branch.

The bank’s confirmation

After the disbursement of the personal loan, the bank will send a confirmation letter. In addition, the bank will provide you with an EMI calendar as well as an amortisation table. This is done to assist you in calculating the principal-to-interest ratio for your loan payments.

The repayment procedure

Once you’ve received the funds, you can begin repaying the loan. You can do this as per the terms of your loan agreement with your bank. You can repay the loan with postdated checks or electronic clearing services. If you got the loan from a bank where you already have an account, you could set up a periodic auto-debit with standing instructions to make the repayment process easier. If you took out a loan from another bank, they would only accept repayment through your salary account.

The most important things to remember about the personal loan disbursement process

  • Your monthly income, credit score, and loan repayment period determine your loan’s interest rate.
  • You can change lenders at any time. But you may be charged a penalty if you switch lenders.
  • Technology is critical in the disbursement of personal loans.


Loan disbursement is simple, but each step is critical. The steps don’t take long. You can apply in minutes and receive your loan soon. A disbursement is the transfer of funds from one bank account to another. Knowing the basics, such as personal loan disbursement, will make the loan process easier and simpler.

Dig into Piramal Finance for more finance-related terms and discover your needs.


  1. Can I cancel my loan once the funds have been deposited into my bank account?
    • Once you’ve got the funds, you can’t cancel your personal loan. You can cancel your application before the funds have been disbursed or even before the lender has approved it. No, you cannot cancel your personal loan application once the funds have been deposited into your bank account. You can cancel your personal loan application before the funds are disbursed.
  1. What exactly is a loan disbursement?
    • The transfer of funds from a bank to the borrower is called a disbursement. The loan is disbursed when the agreed-upon sum is deposited into the borrower’s account and is ready for use. The funds have been moved from the lender’s to the borrower’s account.
  1. How long does it take for a loan to be disbursed after its approval?
    • Your loan application will be processed within 24 hours to a week, depending on the credibility of the facts you provide. Once the loan is approved, banks usually issue a check that borrowers can pick up at the branch or have mailed to them.
  1. Why is disbursement being held up?
    • Delayed disbursements are possible. Commercial banks take longer to process checks drawn from remote banks, sometimes up to five business days instead of the usual three.
  1. What, exactly, is “partial disbursement”?
    • The bank makes partial or partial disbursement loan payments for under-construction property. The lender will wait to start the EMI. The EMI is calculated on the total loan amount. Repayment dues on a partial disbursement may be unfit at the start of the loan term. As a result, many lenders charge interest on the part of the loan that is disbursed.
  1. What Is the Distinction Between a Payment and a Disbursement?
    • Payment is a disbursement. The term “disbursement” implies a completed payment. That is, it has been recorded properly as a debit on the payer’s side and a credit on the payee’s side.