How long does it take to get a loan?

You may be able to get a personal loan in as little as one business day after you apply. However, not every lender has a streamlined process and some financial institutions are slow to process disbursed funds. For most personal loans, you can expect funds in your account within two to five business days, but it may take longer.

If you are in a pinch, a personal loan advertised as an emergency loan will likely be the quickest option. The timeline will ultimately depend on the lender, your finances and you. How you prepare ahead of time and how fast you provide the information your lender needs can extend or shorten your timeline as well.

How long each step of applying for a loan takes

There are three main steps to getting a personal loan: the application process, loan approval and funding. Each step takes a different amount of time depending on the lender you work with.

Application

Average time: Within minutes

While each lender has its own approval requirements, nearly every application requests the same types of information.

To speed things up, there are a few documents you should have on hand when you apply.

• Driver’s license or other identification.
• W-2.
• Most recent federal tax return.
• Bank statements.

After gathering these items, you should be able to apply for a personal loan within just a few minutes. Make sure you input your information correctly to prevent any delays or the possible denial of your application.

Approval

Average time: Same day – 3 business days

If you can prequalify for a personal loan, you’ll likely know the status of your application within minutes. That’s because lenders offering this feature typically use automated underwriting for approvals instead of relying solely on loan officers to decide.

With automated underwriting, the lender’s software looks at your application and credit report information. If it determines you match the lender’s requirements, you’ll usually receive a conditional decision almost instantly. An official offer, however, will still hinge on the lender verifying your application information, which could take a day or two.

If a lender uses manual underwriting, you can expect the process to take a few business days. An employee must review your information and compare it against the company’s underwriting standards — and people work slower than software.

Funding

Average time: Same day – 5 business days

If approved, funding generally takes two to five business days, depending on how much of a loan you get and the type of lender you choose.

Some online lenders promise same-day or next-day funding. Smaller banks and credit unions may take longer, but most should be able to fund your loan within a week of applying if you opt for direct deposit into a bank account.

Your bank may also slow things down. Even if your lender can fund your loan the same day you apply, your bank — or other financial institution — may take longer to make your loan funds available. Asking for a check instead of direct deposit will also lead to slower funding.

How long it takes to get a personal loan by lender type

Most loan applications only take a few minutes to complete, and funding can be delivered electronically to your bank account within one to three business days. But how long it takes for a loan to be deposited depends on the type of personal loan lender you work with and its underwriting process.

Online lender

• Approval time: Typically same business day.
• Funding time: Same day to three business days.

Most online lenders will fund your loan within three business days of approval, and many advertise same- or next-business-day funding. Missing or incorrect information on your application may impact how long it takes for loan approval and funding.

Even if you are approved and funds are sent that same day, you may not see the money in your account for two or three more business days. It depends on how quickly your bank processes deposits.

Bank

• Approval time: One to three business days.
• Funding time: Three or more business days.

Some banks offer personal loans with quick prequalification and funding. You may also have access to better interest rates if you already have a checking or savings account with the institution. That said, if you fall behind on payments and default on your loan, the bank could automatically take the funds from your checking account, depending on your loan agreement.

Many banks take longer to process applications and fund loans than online lenders. They also have more stringent credit score requirements. That can make it harder for you to qualify if you have imperfect credit.

Credit union

• Approval time: One to three business days.
• Funding time: Three or more business days.

Federal, local and regional credit unions often have personal loans. As with banks, funding is not as quick as online lenders, and if you aren’t already a credit union member, you must apply for membership first. Some credit unions don’t let new members take out loans right away.

Despite that, a credit union can still be relatively quick if you already have an account and can receive a direct deposit. Otherwise, picking up a check and signing loan documents in person can add a few days to the process.

That said, credit unions tend to be more lenient with their credit requirements than most banks while still offering highly competitive, low personal loan interest rates. Unlike banks, which are owned by shareholders, credit unions are member-owned. Therefore, they may offer better customer support than banks.

What affects how long it takes to get a loan?

While many lenders tout funding times of one to five business days, even the smallest issue could extend your timeline by a day or more. Remember these issues that can cause delays and try to avoid them when applying for a loan.

• Incorrect or missing documentation.
• Inconsistent or incomplete information on your application.
• Slow response times from you or your lender.
• A manual underwriting process, typically used by traditional banks, instead of an automated one.
• A large loan amount, which may require more extensive underwriting.

Your lender will ask for the specific documents during the application process, but you may be able to find out ahead of time by looking on the lender’s website or asking a customer service rep what will be required.

When your lender requests information, make sure you respond promptly. Check that your contact information is correct and up-to-date to ensure message delivery.

Tips to speed up the personal loan approval process

Lenders are generally able to process applications quickly, thanks to underwriting technology. But these tips can help you speed up the personal loan approval process so you are not plagued with delays.

• Find online lenders: Opting for a lender with an online application process typically leads to quicker approval times.
• Check your credit report: Knowing your credit score and ensuring your credit report is accurate will help you narrow down your lenders and avoid rejection, speeding up the process.
• Prepare your documents: To speed up the personal loan approval process, you should prepare your verification documents in advance. Keeping everything organized can expedite the lender’s process when reviewing your loan application.
• Apply for prequalification: Some lenders that offer prequalification can let you know if you qualify within minutes of submitting an application. While this varies by lender, you will likely be able to apply and receive your loan within a week.
• Review the application carefully: Regardless of the lender type, make sure the application is completed accurately. An incomplete or incorrect personal loan application can lead to your loan being denied — or, at the very least, delayed.

Fast loans that should be avoided

Short-term and payday lenders often attract borrowers with promises of immediate funds and no credit checks. However, unless you can manage to return the borrowed amount and pay high finance charges by the due date — usually your next payday — you will likely find yourself with steep fees.

The typical payday loan has an annual percentage rate (APR) in the triple digits — much more expensive than the APR of a personal loan, which typically tops out at 36 percent. That makes them financially risky.

Say you take out a $500 loan with $75 in fees. If your loan is for 14 days, you will have incurred an APR of 391.07 percent. That is extremely high given that personal loan APRs average 12.64 percent as of early July 2025.

“Payday loans used to be the ‘fast-cash’ loans to be avoided because of the two-week repayment requirement and high fees associated with them,” says Bankrate senior writer, Denny Ceizyk. “However, pay advance apps (such as EarnIn or Empower) and buy now, pay later options (like Affirm or Sezzle) can also drain your biweekly earnings if you start relying on them for expenses in between paychecks.”

Ceizyk notes the “no-fee options” of these products may lure consumers in, but warns that subscription fees and other hidden costs may make them just as expensive as payday loans if used enough. Still, Ceizyk finds these products better than other loans out there. “These quick cash options are still a better alternative than car title loans, because you don’t risk losing your transportation if you default.”

Despite slightly longer repayment periods than payday loans, car title loans still impose steep interest rates and fees. And, as Ceizyk noted, defaulting on a car title loan could lead to the lender repossessing your vehicle.

Bottom line

Factors like the type of loan, underwriting and lender can make a big difference in how fast you receive your funds. Being prepared with loan documents can help expedite the process, but ultimately, it can take anywhere from one to five business days to receive funds. Compare personal loan rates to choose a lender that fits your budget, and beware of payday loans, which can charge absurdly high fees and APRs that can set you back more than they help.