How long does it take to get a personal loan? – Councilor Forbes


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The time you have to wait for a personal loan is crucial when you need cash quickly. If you need to pay rent, schedule emergency surgery for your dog, or cover unforeseen maintenance costs, you often can’t wait more than a few days. Unfortunately, there is no single answer: it can vary depending on the lender.

Here’s what we know about the length of the process, from application to funding.

How long does it take to get a personal loan at a glance

The process for getting a personal loan depends on the type of lender you are using and whether you have a straightforward application or have extenuating circumstances, such as being self-employed or having a high debt-to-income ratio (DTI).

While most types of lenders share a similar application process, each individual lender has their own approval process, which can vary in the time it takes to get a personal loan. Here’s a look at how long it takes, on average, to get a personal loan from a bank, credit union, and online lender.

Online lender

Online lenders generally offer quick approval times and a straightforward application process. However, it may take up to five business days to receive your money. However, some of the best online personal loan lenders offer same day approval and financing.

If you don’t have a lot of time to shop around and compare loans from different types of lenders, an online lender will usually have the fastest process from application to approval to funding.


Traditional banks are a solid option if you don’t need funds immediately and already have a relationship with an institution. If a bank already understands your reputation as a borrower and you hold your accounts with that institution, it can help speed up the approval and funding process. Once approved, personal loans from traditional banks typically take up to seven business days to fund.

Credit unions

Credit unions cater to people within their communities because membership requires you to live in a specific area. If you don’t immediately need funds for a personal loan and are already a member of a local credit union, consider applying for a personal loan through your own. It usually takes up to seven business days for funds to arrive in your account once approved.

How long does it take to get a personal loan from the best providers

3 tips for quick personal loan approvals

Follow these three tips to get quick financing for your personal loan.

1. Eliminate all credit report errors

According to the Federal Trade Commission (FTC), approximately one in five people have an error on their credit report that can affect their ability to qualify for a loan. Before applying for a personal loan, check your credit report with all three credit bureaus to see if there are any errors. If you spot an error, you can dispute it directly with the credit bureau.

You check your credit report from the three credit bureaus — Experian, Equifax, and TransUnion — on Due to the Covid-19 pandemic, you can receive free weekly credit reports until April 20, 2022. Normally, you can only check it once a year.

It is essential to check your credit report with all three bureaus, as the information may vary. If you check only one or two, you might not see an error on the third bureau’s credit report.

Related: How To Easily Dispute Credit Report Errors

2. Know how much you need to borrow

When you pre-qualify for a loan, the lender will ask you for your desired loan amount. If this amount changes after your prequalification, the lender may need more time to complete your application depending on the new loan details.

Make sure you know exactly how much you need to borrow and what monthly payment you can afford before applying for a personal loan.

3. Choose the right lender

Lenders generally have minimum income and credit score requirements, and it is essential to understand these requirements before applying.

If your income is below its minimum, you probably won’t qualify.

If you don’t meet their credit score requirements, you can get someone to co-sign the personal loan. A co-signer becomes legally responsible for the loan in the event of default, which reduces your risk to the lender. Applying with a co-signer will make it easier to get a lower interest rate, which could save you hundreds of dollars over the life of the loan.

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Final result

When you need quick cash, finding the right place to get a personal loan is important. An online lender may be your best bet if you need the funds as early as possible, if not, compare your options with a bank or credit union.


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