From application to approval: Find out how long it takes to get a personal loan

Life happens fast these days. Next-day delivery, streaming on demand, and instantly updated sports results are available whenever you want. You can even get access to your wages before payday. 

So why should you get hung up waiting for a personal loan? Once you make a financial decision, you want the funding as soon as possible. Knowing the right approach could help you get your hands on that money sooner.

How long does it take to get a personal loan? It could take as little as a day or so. This includes applying for the loan, getting approval, and receiving the funding. However, results generally depend on how you prepare and which lender you use. By making the right moves, you can avoid delays in pursuing your financial goals.

How long does it take to get a personal loan: Timeline

Here's a general idea of the time it takes for each stage of getting a personal loan:

At each stage of the process, you may have opportunities to shave off a little time so you can get your loan faster. 

How long personal loan approval takes

How long does it take to get approved for a personal loan? Every lender's process is a little different. It could take as little as a few minutes, or as long as several days to get approved for a personal loan.

Here's what's involved:

• Once you submit your application, the lender will do a hard credit inquiry. This is a formal request for information from a credit bureau. 

• Besides reviewing your credit record, the lender will look at your current financial situation. This includes your employment record, wages, and expenses.

• The lender may also consider the reason you want the loan.

• If you're approved, you'll get a formal offer from the lender. This should include the loan amount, terms (such as interest rates and fees), and the monthly payment amount.

• Once you accept the offer, the lender will release the funds. You can choose to have the money go directly into your checking account. Or, you may be able to have it paid directly to creditors. 

Bottom line: how fast can you get a personal loan? If you apply online and your lender uses automated underwriting, you could get an answer the same day. If you apply to a traditional bank with human underwriters, the process may take longer—perhaps up to a week.

Automated underwriting could speed the process, but a manual loan review could help if you have any unusual circumstances.

How long personal loan funding takes

Congratulations! The lender has approved your application. The next question is: how long does it take for personal loan funds to arrive?

Some lenders offer same-day funding. Otherwise, expect it to take a few business days. In most cases, it should happen within a week or so. 

The timing could depend somewhat on the time of day your application is approved. If it's late in the afternoon, you may miss the cut-off point for bank transfers to occur that day. Getting approved right before a weekend or holiday could also slow the timing.

What could slow down getting a personal loan

Getting a personal loan is normally pretty quick, but a few factors could slow down the process:

• Incomplete information on your application

• Trouble documenting employment history or income

• Discrepancies between what you put on the application and information the lender discovers

• Applying to a traditional lender such as a bank or credit union that still uses manual rather than automated underwriting

• Unusually large loan amounts

• Securing your loan with collateral that needs to be appraised

You know the old saying "haste makes waste"? Taking some extra care when you apply could help you avoid delays on the back end.

How to speed up personal loan approval and funding

Getting a personal loan is usually fairly quick. If your need is especially urgent, you could do some things to speed up the process:

• Check your credit reports before you apply. Knowing where you stand could help you avoid delays. Check your credit reports for any mistakes that need to be cleared up. Also make sure you don't have a credit freeze on.

• Apply to a lender well suited to your credit status. Some lenders have tougher standards than others. If you have great credit, you can pretty much take your pick of lenders. However, if you have a lower credit score, you'll want to make sure you choose a lender that’s open to making loans to people in your situation.

• Get pre-approved. If a lender has a straightforward pre-approval process, it might be worth taking this step. Pre-approval could make sure you're choosing a lender suited to your loan qualifications. You could save time from getting rejected and having to start over with another lender. It also can save you from getting extra dings to your credit score from having to make multiple applications.

• Be prepared. Gather all the necessary information and documents before you sit down to apply.

• Apply online. This saves you a trip to a physical location, like a bank branch. Also, the technology involved with an online personal loan is likely to be faster than submitting a manual application.

• Apply with a bank or credit union where you already have an account. You might get preferred treatment as an existing customer. Also, this might speed the process of verifying your financial situation.

What comes next?

Now you understand the process for getting a personal loan, here are the steps to take once you're ready to apply:

• Check your credit report.

• Assemble documentation such as pay stubs, bank statements, and tax returns.

• Research lenders to find good terms and a fit with your credit qualifications.

• Apply online.

Take your time when making any financial decision. Once you've made up your mind though, you can take steps to make your plans become a reality as soon as possible.