Managing Customer Expectations Loan Processing Timelines

Complete Timeline Overview

Important Note: These are standard timelines for complete applications with all required documentation. Incomplete applications or those requiring additional verification will take longer.

Stage 1: Application Submission to Documentation Complete

What happens: Customer submits application, bank verifies all required documents are received and complete.

Common delays:

• Missing documents
• Illegible or poor quality scans
• Outdated documents (e.g., salary slips older than 3 months)
• Incomplete forms
• Unsigned documents

How to prevent delays:

• Provide customers with a complete checklist upfront
• Verify document quality before submission
• Ensure all forms are signed and dated
• Use digital submission for faster processing
• Follow up within 24 hours if documents incomplete

Customer communication: "Once we receive all your documents, we'll complete the initial verification within [timeframe]. I recommend submitting everything in one batch to avoid delays. Would you like me to email you the complete checklist?"

Stage 2: Credit Assessment and Due Diligence

What happens: Credit officer reviews application, checks credit bureau reports (CCRIS/CTOS), verifies employment, and assesses creditworthiness.

Assessment activities:

• CCRIS/CTOS credit check (immediate - 1 day)
• Employment verification (1-2 days)
• Income analysis and DSR calculation (1 day)
• Property valuation - home loans only (3-7 days)
• Vehicle inspection - used cars only (1-2 days)
• Business financials analysis - business loans (5-10 days)

Factors affecting assessment duration:

Customer communication: "Your application is currently in the assessment stage where our credit team is conducting a thorough evaluation. This typically takes [timeframe] days. The team will review your credit history, verify your employment, and assess your overall application. You don't need to do anything at this stage - we'll contact you if we need additional information."

Stage 3: Approval Decision

What happens: Authorized officer or credit committee makes final approval decision based on assessment report.

Approval authorities and timelines:

Peak periods affecting approval time:

• Month-end/Quarter-end: +1-2 days (high volume)
• Year-end (November-December): +2-3 days
• Property campaign periods: +2-3 days for home loans
• Public holidays: Add holiday duration to timeline

Customer communication: "Great news - your application has been recommended for approval and is now with [approval authority] for the final decision. Approvals at this level typically take [timeframe]. The decision will be communicated to you via phone and email by [specific date]."

Stage 4: Disbursement

What happens: After approval, loan agreement is prepared, customer signs, and funds are disbursed.

Disbursement timeline by loan type:

• Personal Loan: 1 business day after signing (direct credit to account)
• Auto Financing: 1-2 days (payment to dealer upon vehicle registration)
• Home Financing: 3-7 days (involves legal documentation and property title checks)
• Business Loan: 3-5 days (may require opening business account first)
• Education Loan: 2-3 days (payment to institution after confirmation)

Factors affecting disbursement:

• Legal documentation completion (home loans)
• Insurance policy issuance
• Third-party confirmations (dealer, institution)
• Account opening for new-to-bank customers
• Title transfer completion

Customer communication: "Congratulations on your approval! The next step is signing the loan agreement. Once signed, your funds will be disbursed within [timeframe]. For personal loans, the money goes directly to your account. Would you like to schedule an appointment to sign, or would you prefer our digital signing option?"

Customer-Related Delays

Bank/Process-Related Delays

• Property Valuation Delays: Valuer availability, remote locations (common with home loans)
• Credit Committee Schedule: Large loans reviewed only weekly
• Peak Period Volume: Campaign periods, month-end, year-end
• System Maintenance: Scheduled downtimes (usually announced in advance)
• Additional Verification: Complex cases requiring senior review

External/Third-Party Delays

• Credit Bureau Delays: CCRIS/CTOS system issues (rare, +1-2 days)
• Employer Verification: Slow HR department response (+2-5 days)
• Guarantor Availability: Guarantor delays signing documents
• Legal Documentation: Lawyer delays in property transactions (+5-10 days)
• Public Holidays: Non-working days extend timelines

Scenario 1: Customer Applying and Wants Timeline

Good Response: "Thank you for choosing RHB for your personal loan. Based on a complete application, here's what you can expect: Once we receive all your documents today, the credit assessment will take 2-3 business days. Approval decisions are typically made within 1 day after that, and disbursement happens within 1 business day of signing. In total, you're looking at approximately 5-7 business days from today to having the funds in your account. I'll send you email updates at each stage. Does this timeline work for your needs?"

Why it's effective:

• Provides specific numbers, not vague "soon" or "shortly"
• Breaks down the process so customer understands each stage
• Sets clear endpoint (funds in account)
• Confirms this works for customer's needs
• Promises proactive communication

Scenario 2: Processing is Taking Longer Than Expected

Good Response: "I understand your concern, Mr. Tan. You applied on October 1st, and I mentioned you'd have an answer by October 7th. I've checked your application status, and I can explain the delay. Your application is currently pending property valuation, which was scheduled for October 5th but had to be rescheduled to October 8th due to the valuer's availability. Once the valuation is complete tomorrow, your application will move immediately to final approval, which takes 1-2 days. So you should have a decision by October 10th-11th. I sincerely apologize for the delay and I've added a priority flag to ensure no further delays occur. Would you like me to call you personally once the decision is made?"

Why it's effective:

• Acknowledges customer's concern and validates their feelings
• Provides specific reason for delay (not generic excuses)
• Gives updated, specific timeline
• Takes ownership with apology
• Offers personal follow-up to rebuild trust

Scenario 3: Customer Has Urgent Need

Good Response: "I understand this is urgent for you, Mr. Tan. Let me see what we can do to help. Our standard personal loan processing is 5-7 business days, but we do have an expedited service for urgent cases. To qualify for expedited processing, you would need to submit all documents today via our digital channel and maintain availability for immediate verification calls. This could potentially reduce the timeline to 3-4 business days, though I can't guarantee it. Alternatively, if you need funds even faster, you might consider our overdraft facility which can be approved within 24-48 hours for existing customers, though the interest rate is slightly higher. Which option would better suit your situation?"

Why it's effective:

• Shows empathy for customer's situation
• Offers concrete alternative (expedited service)
• Sets conditions for expedited processing
• Manages expectations (can't guarantee)
• Provides another option (overdraft) if needed
• Lets customer choose based on their priorities

Scenario 4: Customer Calls Multiple Times for Updates

Good Response: "Mr. Tan, I see you've called three times in the past week about your home loan application. I completely understand your eagerness - this is an important decision. Let me give you a comprehensive update and set up a better communication plan. Your application is currently [specific status and details]. The next update will be available on [specific date] when [specific milestone]. Rather than you having to call repeatedly, I'd like to arrange for proactive updates. I'll personally call you on [specific date] with an update, and I'll also send you email updates whenever there's a status change. You'll also receive SMS notifications at key milestones. This way, you'll be informed without needing to follow up. Does this sound good to you?"

Why it's effective:

• Acknowledges the pattern of calls without blame
• Validates customer's concern
• Provides detailed current status
• Takes initiative to improve communication
• Sets up proactive updates to reduce unnecessary calls
• Gives customer control and peace of mind

What to Tell Customers When They Apply

Timeline Information:

1. Explain the complete process from application to disbursement
2. Provide realistic timeframes with buffer (under-promise, over-deliver)
3. Mention key milestones when they'll hear from you
4. Explain what they need to do vs. what bank does

Communication Plan:

1. Confirm best contact number and email
2. Set expectations for when they'll be contacted
3. Explain SMS/email update system
4. Provide direct contact if they have questions

Requirements:

1. Clearly list all required documents
2. Explain quality requirements (legible, current, signed)
3. Set document submission deadline
4. Warn that incomplete submissions cause delays

Sample Complete Expectation-Setting Script

"Mr. Tan, let me walk you through what happens next with your personal loan application. You'll receive an automated SMS within 15 minutes confirming we've received your application. Within the next 24 hours, our documentation team will review your submitted documents - that's the salary slips, bank statements, IC copy, and employment letter. If anything is missing or unclear, they'll contact you immediately.

Once your documents are verified as complete - which should happen by tomorrow - your application moves to our credit assessment team. They'll evaluate your application over the next 2-3 business days. This involves checking your credit history, verifying your employment, and assessing your overall creditworthiness.

After assessment, the application goes for approval, which takes about 1 business day. So in total, you're looking at about 5-7 business days from today to get a final decision. If approved, we'll call you to arrange signing of the loan agreement, and funds will be in your account within 1 business day after signing.

Throughout this process, you'll receive email and SMS updates at each major milestone. I'll also give you my direct extension [number] if you have any questions. We commit to keeping you informed, so you won't need to chase us for updates. The most important thing you can do is keep your phone line open and respond promptly if we need any additional information. Does this timeline work for you, and do you have any questions about the process?"

What NOT to Say

• ❌ "These things just take time" (dismissive)
• ❌ "The system is slow" (blames bank without explanation)
• ❌ "I don't know what's happening" (shows lack of effort)
• ❌ "It should have been done by now" (creates worry)
• ❌ "There's nothing I can do" (unhelpful, powerless)
• ❌ "Call back next week" (pushes problem away)

What TO Say

• ✅ "Let me check the specific status for you right now"
• ✅ "I can explain exactly what's causing the delay"
• ✅ "Here's what I can do to help move this forward"
• ✅ "I'll personally follow up on this and call you back by [date]"
• ✅ "I understand this is frustrating. Let me see what options we have"
• ✅ "I'm escalating this to [team] to expedite the process"

Escalation Process

1. Document full timeline and all delays in CRM
2. Note specific reason for escalation
3. Contact Loan Processing Manager (Extension 2600)
4. Provide complete context and urgency level
5. Set clear expectation with customer on callback timing
6. Follow up personally to ensure resolution

Personal Loan

"Your personal loan will typically be processed within 5-7 business days from when we receive all your documents. You'll get a decision within a week, and if approved, funds will be in your account 1 day after you sign the agreement."

Home Financing

"Home financing takes longer due to property valuation requirements. Expect 3-4 weeks from complete application to disbursement. The valuation alone takes 5-7 days, then credit assessment, approval, and legal documentation follow. I'll keep you updated at each stage."

Auto Financing

"Auto loan processing typically takes 7-10 business days. Once approved, you'll sign the agreement, and we'll pay the dealer directly within 1-2 days. You can usually take delivery of your vehicle within 2 weeks from application."

Business Loan

"Business loans involve more detailed assessment of your company's financials, so expect 4-6 weeks for the complete process. We'll review 2 years of accounts, conduct site visits if needed, and the credit committee meets weekly. I'll provide regular updates throughout."