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Personal loans providers often advertise personal loans that you can get “immediately”. Unfortunately, that’s rarely accurate. How long does it actually take to get a personal loan? This guide will cover exactly that, including steps you can take to expedite your loan application process.
Applying for a personal loan may take minutes, but getting your application approved can take anywhere from a few minutes to several weeks, depending on the type of lender.
Online and peer-to-peer lenders can approve your loan in as fast as a few minutes, while banks and credit unions can take as long as a few weeks. That’s because online lenders tend to use algorithms to process your application, while banks and credit unions typically rely on staff for underwriting.
Online direct lenders are generally the best option to get a personal loan quickly. Filling out the application often takes no more than 15 minutes if you have your information and documents on hand.
With some lenders, you can get approved within a few minutes. Others might want to review your application before they request documentation.
Peer-to-peer lenders tend to take longer overall than online direct lenders, but getting approved typically doesn’t involve anything extra.
Like with direct online lenders, approval can take a few minutes if you have all of your information and documents ready. However, some lenders might require more time.
One of the drawbacks of borrowing from a bank or credit union is that getting approved for a personal loan can take much longer. There are a couple of reasons for this. For one, banks often have higher credit standards than online lenders and might take more time reviewing your application to make sure you meet their criteria.
Also, both banks and credit unions often don’t have the technology to process applications quickly. Many rely on staff to underwrite their loans, which generally takes more time.
You can get your funds as soon as the same day or within a few weeks, depending on your lender. Since application times vary from borrower to borrower, lenders often can’t give a very accurate idea of how long it takes to get approved. But most can give an estimate of how long it takes to get your funds.
Once you’re approved, the lender just transfers your funds to your bank account.
Typically that kind of transfer takes around one business day, though some can get you your funds as soon as the same day if you’re approved that morning.
Some lenders with fast approval times might take longer, however.
Since peer-to-peer lenders rely on investors to fund their loans, getting your money can take a little more time, sometimes as long as a week.
But it’s possible to find peer-to-peer options that don’t take as long.
If you already have an account with the bank or credit union, you might be able to get your funds much faster than if you have one with a different bank. That’s because it doesn’t involve a transfer between banks, which can take some time. You may even be able to get your money as soon as the next business day.
If you’d like to receive your loan quicker, you can try signing up for a bank loan online. Many banks offer loan application services on their online banking platforms. You can simply fill up the application form in 5-10 minutes. For smaller loan amounts, you may even receive approval-in-principle, a temporary form of approval, which allows your loan to be approved in as quick as a minute.
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Aside from the type of lender you apply with, how long it takes to complete the personal loan process depends on:
It can take anywhere from one day to a few weeks to get a personal loan from start to finish. Online direct lenders are typically the fastest overall, though you can sometimes find quick funding from even a credit union. Funding speed might not be the only factor to consider when getting a personal loan, however.
To learn more about how they work and compare lenders, check out our personal loans comprehensive guide.
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