What if the merchant’s loan has not been disbursed and is still in progress?

The loan is usually deposited into the merchant’s settlement bank account as per the lender’s policy terms & conditions. This may vary depending on the lending partner the merchant has taken the loan from.
LenDenClub: 7 days
Aditya Birla Finance Ltd.: 2 days 
PayU Finance India Private Limited: 2 days
Muthoot FinCorp ONE: 5 days

Note: If it has been more than the above timelines and the merchant still hasn’t received the loan amount, please ask the merchant to tap Contact PhonePe Support button to report the concern.