How Long Does It Take to Get a Personal Loan?

Quick Answer

Getting a personal loan takes same day to 2 weeks depending on your lender. Online lenders are fastest, with many funding within 1–3 business days after approval. Traditional banks take 3–7 business days, and credit unions may take 1–2 weeks due to membership requirements and manual underwriting.

Timeline by Lender Type

Lender Type	Application Time	Approval Time	Funding Time	Total Time
Online lender	10–20 minutes	Minutes to 1 day	1–3 business days	1–4 days
Bank	30–60 minutes	1–3 days	1–5 business days	3–7 days
Credit union	30–60 minutes	1–7 days	1–3 business days	3–14 days
Peer-to-peer	15–30 minutes	1–5 days	3–5 business days	5–10 days

Step-by-Step Process

1. Prequalification (5–15 Minutes)

Most lenders offer prequalification with a soft credit pull that won’t affect your score. You’ll enter basic information like income, desired loan amount, and loan purpose. This gives you estimated rates and terms to compare.

2. Formal Application (10–30 Minutes)

Once you choose a lender, you’ll complete a full application. This triggers a hard credit inquiry. You’ll need to provide:

• Full legal name, date of birth, Social Security number
• Proof of income (pay stubs, W-2s, or tax returns)
• Employment verification
• Bank statements (typically last 2–3 months)
• Government-issued ID
• Proof of address

3. Underwriting and Approval (Minutes to 7 Days)

Online lenders often use automated underwriting that delivers decisions in minutes. Banks and credit unions may involve manual review, taking 1–7 business days. During this step the lender verifies your income, employment, and creditworthiness.

4. Loan Agreement and Signing (Same Day)

Once approved, you’ll review the final loan terms including the interest rate, monthly payment, fees, and repayment schedule. Most lenders handle this electronically.

5. Funding (1–5 Business Days)

After signing, funds are deposited directly into your bank account. Some online lenders offer same-day or next-day funding. Banks typically take 1–3 business days. Funding timing can also depend on your bank’s processing speed.

Factors That Affect Approval Speed

• Credit score: Applicants with scores above 670 are approved faster because they present lower risk and require less manual review
• Income verification: Self-employed borrowers often face longer timelines because tax documentation is more complex
• Loan amount: Larger loans (over $35,000) may trigger additional verification steps
• Incomplete documentation: Missing or unclear documents are the most common cause of delays
• Existing relationship: Having an account with the lender can speed up the process

Fastest Options for Emergency Funds

If you need money quickly:

• LightStream (SunTrust): Same-day funding for existing customers
• SoFi: Same-day funding available for approved loans signed before certain cutoffs
• Best Egg: Funding as fast as next business day
• Upgrade: Most loans funded within 1 business day of clearing verification

Avoid payday loans and high-interest cash advances, even when time-pressed. The best online personal lenders can fund within 1–2 days at far lower rates.

Tips to Speed Up the Process

• Gather documents in advance — have pay stubs, tax returns, and bank statements ready before applying
• Apply during business days — applications submitted on weekends or holidays won’t begin processing until Monday
• Check your credit report first and dispute any errors that could trigger manual review
• Apply with your primary bank — they already have your financial data, which can simplify verification
• Respond quickly to any requests for additional documentation