When applying for a loan, always ask for realistic timelines and not just average turnaround times, but also what happens in the event of a delay.
A single error, whether itโs a missing document, administrative oversight or technical glitch, can delay loan disbursements. Such disruptions can be more than just an inconvenience for individuals as they can directly impact plans and payments. These delays may seem procedural from the lenderโs perspective, but they can create financial and emotional stress for borrowers. According to Ankit Mehra, CEO of GyanDhan, proactive planning and timely intervention are crucial in such circumstances.ย
Below are critical strategies one can follow to navigate disbursement uncertainties:
Clarify Timelines and Potential Bottlenecks
- When applying for a loan, always ask for realistic timelines and not just average turnaround times, but also what happens in the event of a delay.ย
- Request clarity on documentation requirements, escalation paths, and standard resolution windows.ย
- If thereโs a delay, promptly ask for the specific issue, submit any missing documents without delay, and press for a clearly defined resolution timeline.
Prepare Emergency Liquidity Buffers
- Itโs important to assess the short-term funds to overcome unexpected delays. This could include liquidating maturing fixed deposits, tapping into savings, or reallocating from discretionary spending.
- A temporary emergency budget, prioritising core essentials like housing, food, healthcare and tuition over lifestyle expenses.
Explore Other Financing Options
- Short-term solutions like digital loans, instant overdrafts, or temporary advances from family and close friends can help you cover up the delays.ย
- Many digital lending platforms offer disbursements within 24โ48 hours for small-ticket needs, useful for managing rent or urgent expenses. The goal here is to avoid high-interest or predatory credit while covering essentials until the loan is disbursed.
Communicate with Stakeholders
- Communication is key to every problem. Contact the relevant person or organisation about the loan delay and request temporary extensions or deferred payment plans.
- For students, many institutions have policies to accommodate such scenarios, provided you share documentation. Clear communication avoids late penalties and builds trust during a difficult phase.
Delays in disbursement can feel disruptive, but with a structured approach, individuals can manage the situation. The key is to stay informed, act early, and engage with the stakeholders (lenders, universities, and support systems) with clarity and urgency.ย