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Personal Loans

How Long Does It Take to Get a Personal Loan? What to Expect for Approval, Funding, and More

It can take anywhere from a few minutes to three business days to be approved for a personal loan and get the funds in hand. How long it takes depends on your financial history, credit score, chosen lender, and if you have your documentation ready.

Typically, if you have excellent credit, you can be approved more quickly. Online applications also tend to be processed faster. If speed is your top priority, start by contacting your current bank or credit union. Having an existing account and financial history with the lender might reduce the loan processing time.

Here’s a closer look at the process of getting a personal loan and and how long it takes to complete each step.

Table of Contents

Personal loan processing time: How long does each step take?

There are typically four steps for taking out a personal loan with most lenders: an optional preapproval step, the application, approval, and disbursement of your funds.

Here’s the average time to expect for each step, and how to expedite the process as much as possible.

Preapproval

  • Average time: 1 to 2 minutes

Getting preapproved is optional, but it can reduce the total time it takes to get the personal loan because you can see which lenders you’re likely to be approved by. Preapproval also lets you shop around, review the interest rates, calculate your payments, and check other loan terms before you sign.

Ideally, we recommend completing this process with a few different lenders before making a decision.

Applying for the personal loan

  • Average time: 10 to 20 minutes

The applications for most personal loans are streamlined nowadays. Gathering the necessary paperwork and information can be the most time-consuming part. The average time assumes you have all the documentation you need to proceed on hand.

How long does personal loan approval take?

  • Average time: Instant to 3 days

During this step, the lender reviews your documentation and other details. 

Some lenders offer automatic approval processes that go through instantaneously or in minutes. Others require one full business day (or several) to approve the application.

In cases where your application is unclear or is missing documentation, the lender will follow up for clarification, which can lead to the whole process lasting several more business days.

How long does it take to get your personal loan funds?

  • Average time: Instant to 3 days

Once the lender approves your application, you must sign the paperwork to finalize the agreement. From there, the lender disburses the funds to your account. 

The lender might disburse the funds immediately. It may also take one to three days to arrive in your account due to bank processing times. For specific lenders, it can take up to 10 days. 

Personal loan approval and funding times by lender

We researched personal loans from a mix of online lenders, banks, and credit unions to get an idea of average approval and funding times. Here’s what we found below.

Also be sure to check out our post on the fastest personal loans. It features several lenders that offer same-day funding. Also read our full roundup of the best personal loans.

Type
Credit union
Approval Time
Instant or up to 1 day
Funding Time
Instant
4.6
Type
Online lender
Approval Time
1 – 3 days
Funding Time
1 – 3 days
4.5
Type
Credit union
Approval Time
Instant or up to 2 days
Funding Time
Checks are mailed within 24 – 48 hours; can take up to 10 days to arrive
4.3
Type
Online lender
Approval Time
1 – 2 business days
Funding Time
1 – 3 business days
4.2
Type
Bank
Approval Time
Instant or up to 1 business day
Funding Time
Direct deposit to a Wells Fargo account in 1 – 3 business days; Cashier’s check at signing if you go to a branch
4.0
Type
Bank
Approval Time
Up to 1 day
Funding Time
Funds are sent the next business day; up to 3 days to arrive in your account
3.9
Type
Online lender
Approval Time
Instant or up to 2 business days
Funding Time
Funds are sent the next business day
3.9
Type
Bank
Approval Time
Instant or up to 3 days
Funding Time
Funds are sent the next business day; up to 10 days to arrive in your account
3.8
Type
Online lender
Approval Time
1 – 2 days
Funding Time
1 – 3 business days
3.7
Type
Credit union
Approval Time
Instant
Funding Time
1 business day
3.2

Alternatives if personal loan approval times aren’t fast enough

If you need money right now, waiting days for a personal loan approval can feel impossible. While payday or title loans might seem like a quick fix, they come with a huge catch—sky-high interest rates and fees that can reach 400% or more of the loan amount. That’s a debt spiral waiting to happen.

A smarter short-term solution could be a cash advance app. These apps let you borrow against your upcoming paycheck—sometimes instantly—without the outrageous interest. Depending on the app, you may pay nothing at all, a small one-time fee, or a monthly subscription.

If you only need a few hundred dollars (say, under $750) to bridge a temporary gap and you’re confident you can repay it quickly, a cash advance app can be a far safer and cheaper route than a payday loan.

Here are our top picks for the best cash advance apps to help you get money fast without the financial headache.

About our contributors

  • Taylor Milam-Samuel
    Written by Taylor Milam-Samuel

    Taylor Milam-Samuel is a personal finance writer and credentialed educator who is passionate about helping people take control of their finances and create a life they love. When she's not researching financial terms and conditions, she can be found in the classroom teaching.

  • Amanda Hankel
    Edited by Amanda Hankel

    Amanda Hankel is a managing editor at LendEDU. She has more than seven years of experience covering various finance-related topics and has worked for more than 15 years overall in writing, editing, and publishing.