How long does a personal loan take to get approved?

You’re about to apply for a personal loan, and you’re hoping to have the money as quickly as possible. Personal loan approvals usually don’t take too long, and you can take steps to expedite the process.

Approval for a personal loan could happen nearly instantly, take one to three days, or occasionally even longer, all depending on the lender. After that, the money could hit your account as soon as the same day. Your personal loan funding time will be faster if you apply early and the lender doesn’t have any questions about your application.

How long does a personal loan approval take?

Many online lenders offer near-instant decisions for personal loans. An automated system decides whether to approve your application right away or to trigger a manual review. Manual reviews typically take about one to three business days.

Several factors could affect how long personal loan approval can take, including:

• Credit profile. A good or excellent credit score could speed up the approval timeline.

• Identity verification. If the lender has any trouble verifying your identity, that could delay your loan.

• Income documentation. Clear income documentation could lead to a faster approval.

• Lender’s level of automation in underwriting. Some lenders partially or fully automate the underwriting process. This is how they can offer instant decisions. Lenders with less automation may take one to five business days—or longer.

How quickly can a personal loan be approved? A quick loan approval could happen nearly instantly if your application passes the lender’s automated system.

How long does funding for a personal loan take?

After you’re approved for a personal loan, the funding timeline depends on the lender. Some lenders, especially online lenders, offer same-day or next-day funding. Others fund personal loans within one to three business days, though it could take longer.

Lenders don’t typically guarantee these funding timelines. If a lender offers same-day or next-day funding, that may be when most borrowers receive their funds, but it’s not always the case.

When you apply could also make a difference. Bank transfers only process on business days and not weekends or holidays. 

For example, you choose a lender that offers same-day funding, but you apply and get approved for the loan on a Saturday. You’ll likely need to wait until at least Monday to have the money. If Monday is a holiday, your personal loan funds would probably arrive Tuesday at the earliest.

How long does it take a personal loan to be funded? Loan funding time varies by lender. The fastest ones offer same-day funding, while others can take one to five business days or more.

Common reasons personal loan approval might be delayed

Here are some of the most common issues that could slow down your personal loan application:

• Manual underwriting. If the lender doesn’t have automated underwriting, or if your application can’t be instantly approved, you’ll need to wait for manual underwriting. This could add another few days to the approval process.

• Unclear or incomplete documents. Lenders and their automated underwriting systems could have trouble reviewing these documents. This could trigger manual underwriting, and the lender may ask you to submit additional documentation.

• Employment verification delays. Employment verification is a crucial part of the underwriting process. If the lender can’t verify where you work, it might request proof of employment, such as pay stubs or a W-2 form.

• Identify verification flags. Lenders take identity verification very seriously due to the risk of fraud. Any red flags here, even something as simple as you living at a new address that’s not on your credit file yet, could lead to manual underwriting.

• Requesting large loan amounts. As a general rule, lenders take a closer look at applications for large loans. These loans have greater risk, and lenders want to check that they’re likely to be paid back. You can still get a personal loan that fits your needs—the process could just be a little longer if you’re borrowing a large amount.

Why is my loan still pending? If your loan application is pending, the lender may be manually reviewing it. This process could take a few business days or longer. The lender will follow up for any information it needs from you.

How to speed up personal loan approval and funding

If time is of the essence, you may want to choose an online personal loan from a lender that advertises same-day or next-day funding. You’ll be able to apply immediately from home. If the lender approves your application, it probably won’t take long to receive the funds.

Make sure to apply during business hours and preferably early in the day. Earlier in the week is also better so there’s plenty of time for your loan to get funded before the weekend.

Have your documents ready before you fill out the personal loan application. You might need your ID, pay stubs, proof of address, and bank statements. If you have all of these on hand, you can fill out the application in one go. Once you’re ready to submit the application, double-check that the information you entered is accurate and consistent to improve your chances of an instant approval.

If you’re flexible about how much you borrow, you could also consider requesting a smaller amount of money. Smaller loans are less risky for the lender, so you might be able to speed up the loan process this way.

Fastest vs. slowest personal loan funding

The fastest personal loans are available through lenders that offer same-day or next-day funding. This is fairly common with online lenders, although some brick-and-mortar lenders also offer quick loan approval and funding.

The personal loan process is slower when the underwriting has to be done manually by an employee instead of through an automated system. You can’t avoid manual underwriting with complete certainty. There’s always the possibility that something in an application triggers a manual review. But you can improve your odds of a fast loan timeline by having all your documents ready and providing accurate information in your application.

If you’re in need of a fast personal loan, our experts can help. Talk to a loan consultant today to learn all about your options.