How long does it take to get a personal loan? Borrowing a loan is not like going grocery shopping, where buying and selling happen in a matter of seconds; loans take time to approve and process. Understanding the time required for each borrow method can assist you in selecting the most appropriate form of borrowing and reducing the amount of time you must wait. Hanfincal will provide the exact time each route will take, as well as some tips to help speed up the loan process. Don’t miss out on this fantastic opportunity; follow us and take a closer look at it.
1. How long does it take to get a personal loan?
It depends on the lender. In most cases, obtaining a personal loan takes 7 business days or less. The same day you apply is the quickest way to get a personal loan.
1.1. Online lenders: typically less than 5 days
If you don’t have time to go to the bank or find a lender on your own, an online lender may be the best option for you. Your loan can be approved at any time and from any location.
Online lenders are non-traditional banking institutions that may operate entirely online or as traditional bank branches. Many online lenders do not have physical locations, which saves them money on overhead and offers competitive loans with lower interest rates. However, this usually means you won’t be able to visit a local branch if you have a question or want to make a loan payment in person.
The digital application process of an online lender may be ideal for tech-savvy or on-the-go borrowers. Still, online lenders may not be appropriate for those who prefer a paper or in-person loan application. You should pay attention to the following period:
- Applying time: Typically, applying takes only a few minutes. Basic information, including your address, Social Security number, driver’s license number, and proof of income, will be required.
- Approval time: Approvals can be instant in many cases if no additional information is required, or they can take a few hours.
- When funds are disbursed: Funding can be expected as soon as the same business day or up to five business days after approval.
The time it takes to receive a personal loan from an online lender is determined by financial details and your application, when you apply, whether additional information is required, and how quickly your bank processes the transfer.
1.2. Banks and credit unions: 1 to 7 days
Some financial institutions may allow you to apply online, but others may require you to use it in person at your local branch. After submitting your application, the credit union or bank will review your information, which will usually include examining your income and credit score, before making a decision.
- Applying time: Because the application process varies from one institution to the next, the time it takes to complete an application varies as well.
- Approval time: While some institutions will review your application within a day, others will take several days to review and approve applications.
- When funds are disbursed: Banks and credit unions may be able to fund your loan on the same day that you are approved. This could take a single business day or several, depending on the institution.
If you already have a checking or savings account with a specific bank, you should apply for a loan through that bank first. It may be easier to get approved because it is already familiar with you and your financial habits.
1.3. Payday loans: can be same day
If you need money right away, payday, pawnshop, or car title loan lenders can usually provide you with cash on the spot. But it should only be used as a last resort because this convenience comes at a high interest rate.
The following are the average interest rates for these types of loans:
- Payday loans range from 300% to 500%.
- Pawn Shop loans range from 12% to 240% (or higher).
- Car title loans are 300%.
These exorbitant fees and interest rates may make it challenging to repay that loan, leaving the borrowers further in debt as interest charges accumulate.
2. Tips to get a personal loan faster
Many borrowers find that applying for a personal loan online is the quickest way to get one. Some even specialize in quick personal loans, making them a popular choice among borrowers. This is not only convenient, but it also saves a significant amount of time. Because of that convenience from anywhere, many people have turned to online banks and lenders these days.
The procedure is the same as that of a traditional bank when dealing with an online bank or lender. To begin the process, you must submit your application online. Once the bank receives your form, it will need to review the application and decide.
You will be surprised by the following outstanding benefits of online banks and lenders:
- You can submit your paperwork electronically. There will be no paper documents or extended tax returns to print; instead, they will be uploaded to the lender’s website.
- Personal loan companies that operate online can process applications quickly. Some lenders will approve a loan the same day you apply!
3. What you need to apply for a personal loan
Plan ahead of time to ensure the application process goes as smoothly as possible. Lenders will typically request the following basic information from you:
- Social Security Number
- Identity documentation (your driver’s license or passport)
- Annual earnings
- Income documentation (your pay stub or W-2 form)
To meet the requirements for a personal loan, you should have at least good credit (700 or higher). Moreover, good to excellent credit can help you receive the best interest rate. Some lenders, however, are willing to work with borrowers who have poor or fair credit.
How long does it take to get a personal loan? Obtaining a loan is the quickest way to receive funds. You do, however, have time to complete the procedure that will result in money in your hands. Consider how you can shorten this waiting period if you require cash right away. Read this article once more to ensure that you understand everything HanFincal has to offer.
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