How Long Does It Take To Get A Personal Loan?

How Long Does It Take To Get A Personal Loan

Let’s face it, financial flexibility is key to navigating life’s unexpected twists and turns. One option to help you stay afloat is getting a personal loan. But how long does it take to get a personal loan, and why is this information so essential?

Getting a personal loan depends on factors such as your credit score, choice of lender, and the loan amount. This article will tell you all you need to know about the factors that contribute to processing times and provide you with valuable tips to speed up the process.

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How Long Each Step Of Getting Personal Loan Takes

Depending on what the lender needs from you, the application process can take anywhere from just a few minutes to a few hours. Following that, the approval steps may take up to 1- 2 business days as lenders determine loan terms and interest rates.

Finally, disbursement can take an extra 1-3 business days. This step depends on the lender’s policies and the method of fund transfer. By understanding the duration of each step, you can plan and make better decisions about the personal loan rates that are best for you.


One factor that impacts your application is the lender you choose. Traditional banks may take longer to process your application, often needing weeks for approval and disbursement. Online lenders have faster loan approvals.

This means you can access funds on the same business day. Like payday loans, a personal loan application’s processing time is also influenced by your credit history. Lenders need to assess your creditworthiness. This means you have to submit documents such as bank statements, tax returns, and proof of income.

  • Strong credit history and complete documentation can speed up the approval process. No one likes a waiting game. And if there are inconsistencies, the process may take longer. This means you might have to be patient for a few more business days

Larger personal loans require additional verification and paperwork, thereby taking longer to process.


The lender’s internal processes determine how long the approval process will take. Some financial institutions have streamlined their procedures, enabling them to review and approve loan applications on the same business day.

It takes a few hours to several business days for a personal loan to be approved, with some cases taking several weeks. This timeframe is influenced by factors such as:

  • Credit history, employment status, and income sources that are straightforward and verifiable will speed up the approval process. Lenders may need more time to assess your risk if your financial background shows discrepancies
  • A well-prepared application with all the supporting documents will accelerate the review process
  • An incomplete application might cause delays as the lender requests extra information or clarification


The main factor that impacts the loan funding process is the documentation required. Lenders request proof of income, bank statements, and identification documents. The time it takes for you to gather and submit these documents can influence if the funds are sent on the same day.

Additionally, any errors in the documentation may lead to further delays as the lender seeks clarification.

  • A strong credit score and a clean credit history can speed up the application as lenders will be more confident in your ability to repay the loan.
  • A low credit score or a history of late payments can slow down the process, as lenders may need more documentation or even decline your application.

Read Also: Personal Loan Requirements You Should Know

How Long Does It Take To Get Personal Loan From Different Places?

The approval process at traditional banks is more lengthy due to their thorough credit checks and paperwork requirements. While an online lender, bank, or credit union are generally more responsive.

For fast access to cash, research the following types of places to borrow from. By doing so, you’ll improve your chances of securing the funds on the same day you apply for them.

Online Lenders

Many factors impact the speed at which an online lender approves your personal loan funds. As long as everything is submitted without delay or errors, the entire funding process can happen on the same business day. It’s much faster than traditional brick-and-mortar credit union lenders.

A key factor is the lender’s underwriting process. This involves evaluating your creditworthiness and ability to repay the loan. Online lenders have different criteria, and some will take longer to review and verify your information than others.

In some cases, an online lender can also phone you to check your suitability in more detail. Online lenders often request proof of income, bank statements, and identification, among other documents.

The faster you can gather and submit these items, the quicker your loan options can be approved and make their way to your bank account.

Banks And Credit Unions

How long it takes to get approved depends on the type of loan you’re seeking. Bank or credit union personal loans, for example, are approved faster than business loans or mortgages (which can take up to five days).

This is because personal loans need less documentation and have less stringent eligibility criteria. Other factors that affect the loans approval process are the frequency of on-time payments and credit score.

  • A good credit score and stable monthly payment history will increase the chances of getting approved for personal loans at a credit union or bank
  • A poor credit score or a history of late payments could mean delays

Credit unions, which are known for their personalized and customer-focused approach, tend to have a faster approval process than banks because they are larger and more bureaucratic.

This is especially true if you already have an existing relationship with them. Yet, this is not a hard and fast rule, as there are many banks whose loan approval processes have improved over the years. Still, most traditional banks typically fund loans on business days only.

Read Also: Navy Federal Credit Union Personal Loans Review

Tips For Faster Approval For Personal Loan

Securing fast financial aid can make all the difference. Understanding this need, we have put together a list of tips for same day approval for personal loans. With these, you’ll get the funds you need without unnecessary delays.

Check Your Credit

Many lenders will perform a soft inquiry when assessing your application. A strong credit score accelerates the personal loans approval process. You can check your score online through several online not for profit organizations, such as credit bureaus and financial institutions.

These services generate a credit report that outlines your payment history, current debt, and creditworthiness. By analyzing this information, you can identify any potential issues that might delay your loan application and take corrective measures.

For instance, if your credit score is lower than needed, you can work towards improving it. You can do this by paying down any outstanding debt.

Apply Online

One of the biggest reasons to get a personal loan online is how easy and convenient it is. Instead of visiting several banks, you access their websites and complete the application form.

From the comfort of your own home, you can apply on the weekend and business days. This not only saves time but also allows you to compare various loan details and choose the best competitive rates.

Another advantage of applying for loans online is the use of algorithms that assess your eligibility. These tools process your application and sometimes deliver a decision in just a few minutes. Prepare all the necessary documents that establish your creditworthiness before applying for loans online.

This includes:

  • Proof of identity
  • Income details (pay stubs, etc)
  • Employment information
  • Other basic requirements needed by the lender

Check Your Application

Checking your application, even if it seems like a minor detail, will prevent delays or complications. Most lenders appreciate accurate information, which, in turn, instills confidence and trust in your loans proposal.

When you’re serious about the verification process, you won’t forget to provide documents that support your request (proof of identity, income, credit report, and address). Because if you forget any of these, or they have missing or incorrect documentation, your loan application may be rejected, resulting in a longer wait time.

Consider Getting Preapproved

Preapproval means that a lender has already reviewed your credit report and found you creditworthy to receive a loan. Getting preapproved for a personal loan is a smart move that can speed things up.

For this, borrowers need to show that they’re responsible consumers with solid credit reports – factors that are sought after in the world of personal loans. Preapproved applicants are often given priority treatment. This results in faster approvals, better interest rates, and more favorable loan terms.

Read Also: Understanding the Personal Loan: Prequalify For A Personal Loan or Get Pre-Approved?

Personal Loan Requirements

Knowing the personal loan process facilitates 1-2 business days for funds to be deposited. For example, applications with good credit show your reliability and ability to repay the loan.

  • Generally, each lender type prefers candidates who have scores of 600 or higher, although some may consider candidates with lower scores. The more excellent credit score you have, the less expensive interest rates will be for you

Stable employment and a consistent income are also vital components of the personal loan requirements.

  • Each individual lender wants to see that you have a dependable employment situation and are able to make repayments on the personal loans they offer. Being employed for a considerable period with the same company or having a steady freelance salary can help strengthen your case

Finally, consider your debt to income ratio. This ratio compares your monthly debt payments to your monthly income, and a lower percentage is more desirable.


To get personal loan funds fast, you’ll need to apply to a lender offering funds on business days. An online financial institution, for example, will offer faster loan payments than traditional credit unions.

How quickly you’re approved will depend on credit scores and loan amounts. No matter these details, it takes anywhere from a few hours to a couple of days to get a personal loan approved and funded to your savings account.

Don’t forget that online lenders offer faster response times, while many banks may take longer to approve applications. For a faster process, make sure you have the appropriate paperwork ready and maintain a good credit score.

Keep in mind when you compare lenders, you have a better chance of choosing the right lender for a smooth borrowing process.

Sources Used in Research for the Article:

  1. Check Your Credit, Consumer Financial Protection Bureau,
  2. Your Credit History, Federal Trade Commission,
  3. Understand, Get, And Improve Your Credit Score, USA Gov,


Can I get a personal loan in 24 hours?

Rapid advancements in technology and online lending mean getting personal loan funds on the same business day is possible. Many lenders now offer fast application times and quick funding (E.G. payday loans), allowing you to receive same day funding

Is it hard to get a personal loan fast?

The answer to this question depends on several factors, such as credit scores, financial history, and lender type requirements. But as long as you submit the necessary documents, have a decent credit score, and apply online, you should have a decent chance of funding in at least 1-3 business days

Can I speed up getting a personal loan?

To speed up the process, start by ensuring your credit score is in good standing, as this will make you a more attractive candidate to lenders. Next, gather documentation like proof of income and identification to avoid delays. Finally, research lenders that offer funding on non-business days.

Where to apply for a personal loan to get it faster?

Some of the top lenders online include Wells Fargo and Rocket Loans. These lenders work by offering a hassle-free and efficient experience. These platforms often fund money quickly, within 1-2 business days, making them a go-to choice for those in need of immediate financial assistance