If you’re considering a personal loan, you may be wondering how long it takes to go from submitting an application to actually receiving the money. The answer depends on the lender, your application, and whether additional verification is required.
Some lenders can make lending decisions relatively quickly, while others may take several business days or longer to review an application. Even after approval, additional time may be needed before the funds reach your bank account.
How Long Does It Take to Get a Personal Loan?
There is no single timeline that applies to every personal loan. Depending on the lender and the borrower’s circumstances, the process can range from a relatively quick decision and funding process to several business days or longer.
According to Experian , personal loan approval and funding times vary by lender, and the time needed to receive funds after approval can range from relatively quickly to several days.
The overall timeline usually includes several stages:
- Preparing and submitting your application
- Lender review and verification
- Receiving a lending decision
- Reviewing and accepting final loan terms
- Receiving the funds
Each stage can affect how long the entire process takes. For example, an application that requires additional income or identity verification may take longer than one that can be reviewed without additional documentation.
Personal Loan Approval Time vs. Funding Time
One of the most important distinctions is the difference between approval time and funding time.
Approval time
Approval time is the period between submitting a completed application and receiving the lender’s credit decision. The lender may review factors such as your credit profile, income, existing debt, employment information, and other eligibility requirements.
If you want to understand what lenders may consider before applying, see our guide to personal loan requirements.
Funding time
Funding time begins after a loan is approved and the borrower has completed any remaining requirements and accepted the final terms. The lender then disburses the loan proceeds according to its process.
Depending on the lender and financial institution involved, the funds may arrive relatively quickly or may take several business days. Weekends, holidays, verification issues, and bank processing can also affect timing.
What Can Affect How Long a Personal Loan Takes?
Several factors can influence how quickly an application moves from submission to funding.
1. The type of lender
Banks, credit unions, and online lenders may use different application and underwriting processes. Some lenders use more automated systems, while others may perform additional manual review.
Speed can be useful, but it should not be the only factor you consider. APR, fees, repayment terms, monthly payments, and total borrowing cost can be more important over the life of the loan.
2. Whether your application is complete
Missing or inconsistent information may slow down the review process. Before applying, make sure the information you provide is accurate and that you have any documents the lender requests available.
3. Income and identity verification
A lender may request documents or other information to verify your identity, income, employment, or financial situation. Additional verification can add time to the process.
4. Your credit profile
Lenders use their own underwriting standards. Depending on the application, additional review may be required before a final credit decision is made.
5. When you apply
Applications submitted near weekends or holidays may take longer to move through certain processing or banking steps. Cutoff times can also affect when approved funds are transferred.
6. Your bank’s processing time
After a lender sends the money, your bank or financial institution may still need time to process the deposit. This means the lender’s disbursement time and the time the money becomes available to you may not always be identical.
Can You Speed Up the Personal Loan Process?
You cannot control every part of a lender’s review process, but being prepared may help avoid unnecessary delays.
- Check the lender’s eligibility requirements before applying.
- Gather requested identification and financial information in advance.
- Double-check your application for missing or incorrect information.
- Respond promptly if the lender requests additional documentation.
- Compare lenders before submitting a full application.
If available, prequalification may also help you review potential options before submitting a full application. Learn more in our guide to personal loan prequalification.
Should You Choose a Personal Loan Based on Speed?
Funding speed can matter when you need money for a time-sensitive expense, but choosing a loan primarily because it appears fast can cause you to overlook the actual cost of borrowing.
Before accepting a loan, review factors such as:
- Annual percentage rate (APR)
- Origination and other fees
- Monthly payment
- Repayment term
- Total borrowing cost
- Prepayment or late-payment terms, when applicable
Our guide to comparing personal loan offers explains the key factors to evaluate before choosing an offer.
What Happens After You Submit a Personal Loan Application?
After you submit a full application, the lender reviews the information you provided and may perform a credit check and request additional documentation. If the application is approved, you will generally receive final loan terms to review before accepting the loan.
If you have not applied yet, our step-by-step guide to applying for a personal loan explains the process in more detail.
Read the final agreement carefully before accepting. The actual APR, fees, payment amount, repayment period, and other terms may differ from estimates you saw earlier in the shopping process.
Watch Out for Guaranteed or Upfront-Fee Loan Claims
Be cautious if someone promises that you are guaranteed to receive a loan regardless of your credit history and requires an upfront payment for that promise.
The Federal Trade Commission (FTC) warns consumers about advance-fee loan scams in which someone promises access to credit but demands money first. The FTC notes that legitimate lenders do not guarantee that paying a fee will result in getting a loan.
Frequently Asked Questions
Can a personal loan be approved quickly?
Some lenders can make lending decisions quickly, but processing times vary. Additional verification or documentation may extend the timeline, and approval does not necessarily mean funds will be available immediately.
How long does it take to receive money after approval?
It depends on the lender and the method used to disburse the funds. Some lenders may fund relatively quickly after approval, while other situations may take several business days. Bank processing, weekends, and holidays can also affect when funds become available.
Why is my personal loan application taking longer than expected?
A lender may need additional documentation, identity or income verification, or further review of the application. Processing schedules and banking delays can also affect the timeline.
Does prequalification mean my loan is approved?
No. Prequalification generally provides an indication of potential eligibility or terms based on preliminary information. It is not a guarantee of final approval or final loan terms.
Should I apply with the lender that offers the fastest funding?
Not necessarily. Funding speed is only one factor. Compare APRs, fees, repayment terms, monthly payments, total borrowing costs, and lender requirements before making a decision.
Bottom Line
How long it takes to get a personal loan depends on the lender, the completeness of your application, verification requirements, and the funding process. A lending decision may happen relatively quickly in some cases, while other applications can take several business days or longer to complete.
Rather than choosing a loan based only on speed, take time to understand the total cost and terms. If you’re ready to evaluate potential options, use our personal loan comparison guide to learn what to check before borrowing.