How Long Does It Take to Get a Personal Loan

A personal loan can be used for any number of purposes: for example, to cover an emergency expense like a medical bill, make costly home repairs, pay for a large purchase, or consolidate existing credit card debt. If your financial needs are more immediate—such as replacing a water pipe that burst in your home—you’ll need the cash from your personal loan quickly.

Here’s a rundown of what to expect from each step of the personal loan process, including when you can expect an approved loan to get funded and how long it takes to get a personal loan from start to finish.

How long each step takes

There are a number of different steps involved in applying and being approved for a personal loan, each of which can impact the time it takes to get funded. Depending on which lender you choose and how you apply, these steps can take as little as a few seconds or even days to complete.

Step 1: Research lenders

If you’re facing an unexpected medical bill or big home repair and need cash quickly, finding a lender that has fast approval and funding is imperative. Thankfully, many of the best personal loans offer an online application process, approval in minutes (if not less), and funding as quickly as the same business day.

By researching and comparing lenders, you can also find the right one for you depending on how much you need to borrow, how long you want to repay the debt, and whether or not you qualify based on factors like your credit score and income. You can also compare interest rates and loan fees to see which loan is the most affordable and will save you money in the long run.

This step in the process can take just a few minutes or, if you have the time, multiple days.

Step 2: Get pre-approved online

Most lenders today offer online personal loan applications, sometimes with pre-approval that won’t hurt your credit score. This step often takes a couple of minutes or less to complete and depends on how quickly you can type in your basic personal information.

Getting pre-approved is often a matter of entering info such as your:

• Name and birthdate.
• Address.
• Email and phone number.
• Income and debt .
• Desired loan amount.

Some lenders will also ask for your Social Security number (SSN) and employment information, while others will wait to request this information until later in the process.

Online loan pre-approval generally involves a soft credit inquiry, meaning that the lender will use available information to qualify you for the loan without making a hard pull on your credit. However, once you decide to move forward with your loan, the lender will often utilize a hard inquiry to verify your information. This will temporarily lower your credit score.

Step 3: Choose loan terms

Once you’re pre-approved, lenders will typically offer you a few different personal loan terms from which you can choose. If you already have an idea of the interest rate you want or the monthly loan payment you can afford, this step might take you just seconds to complete.

The number of choices you’re offered will depend on the lender and the loan terms it allows, including how many months you can take to repay your debt and which interest rates are available. It might also depend on how much you’re borrowing and personal factors such as your credit score. Expect to see lower interest rates when you choose a shorter repayment term, have a better credit score, or borrow a lower amount and vice versa.

Step 4: Sign loan documents

Once you’ve selected the loan that works best for you, it’s time to move forward with finalizing it. This is often the longest part of the process and may take anywhere from five to 15 minutes to complete, depending on the lender and whether you have all relevant information at the ready.

Finalizing your loan involves signing a promissory note, which is essentially your guarantee that you’ll repay the loan as promised. It outlines details such as how much you’re borrowing, the interest rate you’ll pay, when payments are due, and any other applicable fees on your loan. This can often be signed digitally, especially with most of today’s online lenders, though some banks and credit unions may require you to fax or mail in your signed documents. Some banks might even need you to come into a local branch to finalize your loan, which will (obviously) lengthen this step in the process.

In addition to signing your loan documents, this step might also involve providing the lender with certain verification. Depending on the lender’s requirements, this could include emailing or uploading documents such as bank statements, pay stubs, previous W-2s, or even tax returns.

Step 5: Provide funding information

Once everything is chosen and signed it’s time to tell the lender where to send your loan funds. If you have this information ready to go, this step might take you just a minute or two to complete.

Many lenders will request your funding information and preferences as part of the loan finalization process. If you want your funds sent by wire or ACH transfer, you’ll need to provide your bank’s routing number, your personal account number, your bank’s name and address, and the account holder's info. You may also be able to get your funds via check, in which case you’ll need to verify your mailing address.

If your lender has local branch locations, you can sometimes request to pick up a check in person. When opting for this funding choice, you’ll usually just need to pick the branch that’s closest to and most convenient for you.

Step 6: Receive money

This is the step in the process that varies the most in regards to timing because it depends on the lender you went with and the funding option you chose. Some lenders can send a wire or ACH transfer straight to your bank account in as soon as a few hours, while others will prefer to have you pick up a check in a few business days. If you need cash fast, be sure to choose a personal loan lender with a fast funding process.

Funding time by lender type

How long it takes to get your personal loan funds can depend not only on the loan you get but on the type of lender you choose.

Online lender

Many online personal loan lenders offer a quick application, approval, and funding process so you can get your loan quickly. You can be approved for a loan in as little as 60 seconds with some of these lenders, and receive funds in your account as quickly as the same business day.

Bank or credit union

Traditional banks and credit unions may also have a quick approval and funding process, though some financial institutions may also take a bit longer. Truist personal loans, for example, can be approved online in just minutes and funded as quickly as the same day. USAA personal loans, on the other hand, take about two business days to fund after all of the documentation is squared away.

Payday advance apps

If you take out a small loan through a payday advance app or a banking institution that offers this feature, you can usually get cash deposited into your account in as quickly as a few minutes. Some banks will offer faster deposits with a fee, while fee-free customers will see funds the next business day.

Credit card cash advance

If you already have a credit card that allows for cash advances (and you have the credit available) you may be able to get funds immediately. Your credit card will often allow for ATM withdrawals, so you can visit any working machine to take out the cash you need. You may need to request a PIN from your issuer, however, if you’ve never taken out an advance against your account before.

Payday loan and title loan companies

You may be able to walk out in just minutes with cash in hand when opting for a payday loan or title loan. These companies work with you on the spot to quickly borrow the short-term funds you need today, but there are caveats as we explain later.

Tips to get approved when applying for a personal loan

Want to better your chances of approval (and fast funding) when applying for a personal loan? Here are some of our top tips:

Make sure your credit is in order

The better your credit score and credit history, the better your chances of loan approval. Of course, this won’t help when you’re facing an unexpected emergency. But getting your credit in order before you know you need to apply for a personal loan—such as a wedding loan that you’ll use in the coming months—can make the process faster and easier.

Check your credit reports for any errors and make sure that you make payments on time every single month. If you find any errors, be sure to dispute them with the reporting credit bureau and the creditor. You can also improve your credit-related approval chances by paying off existing balances. This will help to improve your credit utilization and debt-to-income ratio (DTI).

Don’t ask for more than you need

Personal loan approval (and the terms you’re offered, such as the interest rate) is often based on a proprietary formula that each lender uses. This formula takes into account your requested loan amount, how much you earn, how much you already owe each month on your existing debt, and your credit score.

For this reason, you’ll improve your chances of approval and may even snag lower interest rates by borrowing only what you need. A larger loan amount, while available through many lenders, may be more difficult to get approved for and could delay funding.

Have all of your information ready

Being prepared is one of the best ways to make sure your loan process goes quickly and smoothly. You won’t know exactly what your lender needs until you start the application, but having the following items on hand can help:

• Your contact information.
• Your SSN and birthdate.
• The name, address, account number, and routing number of the bank where you want your funds sent (and where you want to make monthly payments from).
• Your household expenses, including your monthly mortgage or rent payment.
• How much you make annually and your employer’s information.

Add a co-signer if you need one

A joint personal loan is one that you take out with another person. This can be helpful if you’re unable to qualify on your own, due to factors like your income, credit score, or a limited credit history. It can be especially helpful if you need to borrow a lot of money to cover something like a home renovation or big medical bills, but aren’t able to qualify quickly on your own.

Not all lenders allow for co-signed loans, though, so you will need to do some research to whittle down the list. If you plan to add a co-borrower to your loan application, be sure to have their information available (including their full name, birthdate, SSN, and address, at the very least) before starting the process.

Fast loans that should be avoided

While many of the best online lenders offer funding as quickly as the same or next business day, faster isn’t always better. Some loan options can get you cash in hand within hours, but can be costly and even predatory in nature.

Payday loans

Payday loans are small, short-term loans intended to just get you through to the next payday. Often available for up to $500, these loans are offered by payday loan companies and usually charge a set fee based on the amount borrowed. While the fee doesn’t always feel like much ($15 per $100 borrowed, for example), this calculates out to an exorbitantly high annual percentage rate (APR).

If you qualify, a regular personal loan may be the much better—and much more affordable — option. Personal loan interest rates often range from about 7% to 30% APR, while many payday loans have rates of 400% or more, according to the Consumer Financial Protection Bureau (CFPB).

Car title loans

Similar to payday loans, car title loans are quick funding options that hold your vehicle’s title as collateral to secure the loan. These loans may be available for up to 25% or even 50% of your car’s current value, with a repayment date days or weeks in the future.

As with payday loans, though, these are often predatory borrowing options. Fees—which can include not only interest but origination and even document fees—far exceed those of personal loans, especially loans where you put up collateral, such as yor car.. And while most personal loans are unsecured, you will lose your vehicle if you default on your title loan.

Pawn shop loans

If you have valuable items, you may be able to get cash in just minutes by taking out a pawn shop loan. However, these loans are secured by your valuables and often give you a mere fraction of what the items are actually worth.

You’ll get your items back when you pay off your loan. But these too come with fees and interest rates that far surpass personal loans, especially when you account for the length of time you’re borrowing. Plus, if you default, you’ll lose your valuables.

Fast alternatives to personal loans

Not sure if you can qualify for a personal loan or if it’s right for you? These alternatives might be worth considering.

Line of credit

If you have an existing line of credit available through a bank or credit union, this can be a great resource for cash as you need it. Lines of credit can be secured by a savings account, investment portfolio, the equity in your home, and more. You can tap into these funds as you need them, then repay the funds after you borrow, freeing up the credit line once again.

Credit card cash advance

Many credit cards allow for cash advances, which pull from your account’s credit limit. You may pay fees for a cash advance and even higher interest on the debt (if you don’t pay it off right away), but this can be an easy way to get cash from an account you already have. Plus, if you take out a cash advance from a card you own, you won’t see another hard inquiry hit your credit report.

Payday advances

While they sound similar, these are different from the payday loans mentioned above. Payday cash advances are offered by select banks and credit unions, and allow you to get an advance on direct deposit funds before they hit your account.

In many cases, you can get up to $500 in payday advance funds that are deposited into your account immediately, often for little or no fee. Once your paycheck arrives in a few days, the borrowed amount is repaid and you can use the feature again. You can usually request these funds in-app or through your bank’s online platform.

TIME Stamp: Many lenders offer same-day funding if you qualify

Personal loans give you access to the funds you need for big expenses or emergency bills, even if you weren’t expecting them. Many of today’s lenders allow for online applications, immediate credit decisions, and loan funding that can all be completed as quickly as the same business day. Depending on the lender you choose, you could have the loan funds you need today or tomorrow, helping you cover immediate expenses without delay.

Frequently asked questions (FAQs)

Want to know more about personal loans and how quickly you can get the cash you need? Here are some of the most frequently asked questions.

How long does it take for a personal loan to be approved?

Some personal loan lenders offer online credit decisions that take 60 seconds or less, often without impacting your credit. You can review their decision and your loan options, then get funded as soon as the same business day—sometimes within just hours.

How many days does it take for a personal loan?

Depending on the loan and lender you choose, you can get a personal loan the same business day. Some lenders may offer funding the next business day while others can take up to a week for funding, so be sure to shop around if you need cash fast.

How hard is it to get a $5,000 personal loan?

In order to get approved for a $5,000 personal loan, you will usually need at least a fair credit score and a form of verifiable income. The exact requirements will vary by lender and whether the loan is secured or unsecured. If you’re having trouble getting approved, you might want to add a creditworthy co-borrower to the application.

How long does it take to get a personal loan through?

A personal loan application can often be completed in just minutes online, from getting pre-approved to choosing loan terms and signing documents. Loan funding can be completed the same or next business day in many cases, just depending on the lender you choose.