How Long Does It Take To Get a Personal Loan?

If you’re in need of fast cash, a personal loan can help. Fortunately, getting approved for one and receiving the funds is typically a quick process. You could get money the same day you apply for a personal loan or within two to five business days — depending on the lender and how long it takes to approve your application.

To get your money as fast as possible, here’s what you should know.

Funding and approval

When you take out a personal loan, there are two phases to funding: approval time and time to fund. First, you must get approved for the loan. Your credit score and income play a large role in that, which is why it’s important to make sure you meet the lenders’ minimum requirements before applying. 

If you easily check all the lender’s boxes, your application could sail through underwriting. But if not, the lender might require more information from you, which takes time for you to submit and for the lender to review.

Once you’ve been approved, you’ll need to wait for the lender to distribute the funds. How long this takes depends on the lender’s typical funding times. If you need money as soon as possible, choose a lender that offers fast personal loans. But even if you choose a lender with same-day funding (and get approved the day you apply), you still may not receive your money that day.

Before you apply, check eligibility requirements and prequalify with multiple lenders. Prequalification gives you a sense of which loans you may qualify for and at what rates — most lenders offer it. It won't hurt your credit, but it is not an offer of credit. When you formally apply, the lender will conduct a hard credit pull, which can temporarily ding your credit score, and you'll see final rates and terms once your application is approved.

Lender funding time

Generally speaking, online-only lenders, banks, and credit unions can fund your personal loan by the next business day after your application is approved. One exception to this rule is if you get a personal loan from a bank or credit union but choose to deposit the funds in another institution's account. In that case, it could take longer.

Online lenders vs. banks vs. credit unions

Here's a quick look at funding times after approval for several online lenders, banks, and credit unions..

Loan approval time

To get approved for a personal loan, you’ll need to fill out the lender’s application. You’ll need to provide basic information about yourself, such as your name, Social Security number, address, phone number, and annual income, as well as the loan’s purpose and information about your employment.

You should also be prepared to submit documents, like a driver’s license or passport that show proof of identity, plus tax forms, bank statements, or pay stubs to prove income. To avoid delays, be sure to complete your application thoroughly and check your work to make sure everything is accurate — a typo or other errors could delay approval and the delivery of funds.

Prequalify first

It’s also best to prequalify with lenders before you apply for a loan. This can help you gauge which lenders are more likely to approve your application and which aren’t, saving you valuable time if you need money now.

Once you know which lender you like best, it’s time to formally apply. At this point, the lender will perform a hard credit inquiry, which may temporarily ding your credit score by a few points. Then, the lender will review your application and get back to you with an approval decision.

How to speed up the process

The first step is to apply as soon as possible — early in the day — especially if you're hoping to get same-day funding. Lenders that offer same-day funds typically have cutoff times by which you'll need to be approved and sign documents to get money that day. For example, SoFi's cutoff time is 6 p.m. ET.

Preparation also helps the loan application and approval processes move more quickly. Make sure you have all the documentation you'll need for the application. Although documents required to verify your identity and income can vary by lender, they typically include:

• Government-issued ID
• Recent pay stubs
• W-2
• Bank statements
• Social Security number

With your documents ready to go, start your application. If you're worried about making a mistake or confused about a question on the application, contact customer service via chat or phone for help. Getting guidance before you submit the application could help you avoid starting over.

After you submit your application, monitor your email and text messages. The lender may contact you to request more documents. The faster you satisfy the requirements, the quicker your lender can process your application.

What can delay loan approval

As hard as you try to make your loan application go quickly, a few scenarios could extend your personal loan processing or funding time.

• Lenders typically require self-employed and freelance applicants to provide more paperwork than usual.
• If you apply in person at a bank or credit union, it may take longer to get your loan because you'll need to set up an appointment during normal working hours.
• If you apply on a weekend, it may take longer to process your application.
• If you request payment by check instead of bank transfer, it will take longer to receive your money.
• The bank you're depositing your loan funds to isn't the same bank you're getting your loan from.

What to expect after loan approval

If you’re approved and accept your loan offer, the lender will disburse your funds. Depending on the lender, you may receive them that same day, the next business day, or within a few days. Most lenders will send the money directly to your account through direct deposit, but some offer prepaid cards or checks.

Repayment will usually begin 30 days after you receive your loan funds — it can last anywhere from less than one year to more than 10, depending on the lender and what you intend to use the loan funds for. But the quicker you pay off your loan balance, the less you’ll pay in interest over the life of your loan.

Just make sure your lender doesn’t charge a prepayment penalty. (Note that Credible lenders don’t charge prepayment penalties). Also, timely payments can improve your credit score, while late or missed payments will hurt it.