You finally got the “Loan Sanctioned” notification. But days pass — and no money is credited.
If you're wondering, "Why was my loan approved but not disbursed?", you're not alone. Thousands of borrowers face this frustrating delay.
Let Vizzve Finance decode what’s going wrong and how you can speed up the process.
Key Terms: Sanction vs Disbursement
| Term | Meaning |
|---|---|
| Loan Sanction | Approval in principle — based on creditworthiness |
| Loan Disbursement | Actual release of funds into your bank account |
Just because a loan is sanctioned doesn’t mean it will be disbursed immediately.
7 Common Reasons for Disbursement Delay
1. Incomplete Documentation
Even one missing or mismatched document (like bank statement or PAN) can stall the process.
2. Signed Agreement Pending
Loan agreements must be digitally or physically signed before release.
3. Post-Dated Cheques or ECS Mandate Not Submitted
Banks require PDCs or auto-debit authorization before fund release.
4. KYC Verification Delay
Video or physical KYC still pending? Disbursement will be paused.
5. Technical/System Delays
NBFCs or fintech lenders may face backend delays or server errors, especially during high application periods.
6. Bank Holiday or Processing Time
Weekends, bank strikes, or non-working hours could affect disbursement timelines.
7. Lender’s Last-Minute Review
Some lenders do a final income verification or account check before releasing large amounts.
How Vizzve Finance Helps You
✔️ Track Your Application in real-time
✔️ Instant alerts for missing documents or next steps
✔️ Connect with your loan relationship manager
✔️ Smart dashboard to view loan sanction vs disbursement progress
💡 Pro Tip: Always call the lender’s helpline or login to your loan portal to check the status.
Vizzve Case Study
Anjali applied for a ₹3L personal loan. Sanctioned in 2 hours, but not disbursed for 4 days.
Issue? Her e-mandate failed due to a wrong IFSC code.
With Vizzve's support, it was fixed in 30 mins and disbursed the same day.
FAQs
Q1: How long after sanction is a loan disbursed?
Typically 24–72 hours after signing the agreement and completing KYC.
Q2: Can a sanctioned loan be rejected?
Rare, but yes — if fraud, documentation issues, or legal hurdles arise.
Q3: Can I cancel a sanctioned but not disbursed loan?
Yes, you can request cancellation with most lenders before disbursal.
Published on : 22nd July
Published by : SMITA
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RBI-Registered Loan Partner | 10 Lakh+ Customers | ₹600 Cr+ Disbursed