How Long It Takes to Get a Personal Loan

Name: How Long It Takes to Get a Personal Loan
Item: How Long It Takes to Get a Personal Loan
Author: Staff Writers

MoneyGeek compared personal loan lenders and found that the average funding time is two days. While online lenders may provide same-day funding, banks and credit unions may take several business days to disburse funds.

Reviewed byAlvin Yam, CFP

Edited byCasie McCoskey

Updated: May 8, 2024

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Personal loans can quickly give you the cash you need for whatever comes up. However, the time it takes to get your money can vary from one lender to another. Some lending institutions provide the funds on the same day you apply, while others might take a few days or even up to a week. Knowing how quickly you can obtain a personal loan can help you choose the right lender for your specific needs and situation, ensuring you get your money without unnecessary delays.

Length of Each Step in a Personal Loan Application

Before you apply for a personal loan, understand that each lender has its own process and timeline. How fast you go through each stage can influence how quickly you get the funds. Generally, getting a personal loan involves three main steps:

Application

Applying for your loan is your starting point. At this step, you submit personal and financial information to the lender. This includes your name, address, employment details, income and any existing debts. Depending on how complex your application is and how prepared you are with the necessary documents, completing this phase can take anywhere from a few minutes to a few hours.

Approval

After you submit your application, the lender will review it to assess your creditworthiness. This process involves examining your credit score, income, debt-to-income ratio and other financial details to decide if you are likely to repay the loan. The time it takes for this process can vary widely. Some lenders use automated systems that can approve your application within a few hours, while others may take a few days to conduct a thorough review of your documentation.

Funding

Once your personal loan is approved, the next step is funding, where the lender disburses the loan amount to your account. The time it takes for you to receive the funds can vary, with some lenders depositing the money into your bank account on the same day of loan approval. Others may take one to seven business days, depending on their processing times and the specifics of your bank.

Personal Loan Approval Time by Lender Type

Understanding the typical approval times for each type of lender can help applicants who need to plan around specific time constraints or have preferences for when they receive their loan to find an option that best fits their financial timeline.

Average Funding Time of Personal Loan Lenders

We analyzed 27 personal loan lenders in our database and found that the average time it takes for borrowers to receive their funds is two days. Our analysis included lending institutions that provide same-day and next-day funding, as well as those that take up to seven business days to disburse loan funds.

We’ve provided information below on lenders who span the gamut of funding times so you can get a sense for how terms and conditions vary.

Alliant Credit Union

10.99% to 13.99%APR Range
UndisclosedMinimum Credit Score
$1,000 to $100,000Loan Amount Range
12 to 60 monthsRepayment Terms
Same DayTime to Receive Funds

Alliant Credit Union offers personal loans up to $100,000 with repayment terms ranging from 12 to 60 months and interest rates between 10.99% and 13.99% APR. It typically provides same-day funding following loan approval. Additionally, borrowers benefit from no origination fees or prepayment penalties and can receive a 0.4% discount on their rate by setting up autopay. However, it's important to note that you must be a member of Alliant Credit Union for at least 90 days before you can apply for a personal loan.

Pros

Borrow up to $100,000
No origination or prepayment fees
Has autopay discount

Cons

Need to be a member for at least 90 days to apply
Doesn't disclose qualification requirements
No soft credit inquiries

Axos

11.79% to 20.84%APR Range
730Minimum Credit Score
$7,000 to $50,000Loan Amount Range
36 to 72 monthsRepayment Terms
1 to 3 Business DaysTime to Receive Funds

Axos Bank offers personal loans ranging from $7,000 to $50,000 with repayment terms of 36 to 72 months. Interest rates for these loans vary from 11.79% to 20.84% APR, and funds are typically disbursed within two days after loan approval. While Axos Bank does not impose prepayment penalties, borrowers should be aware of origination fees ranging from 1% to 2%. To qualify for a loan, you must have a minimum credit score of 730.

Pros

No prepayment penalties
Conducts soft credit inquiries
Option to change your payment due date

Cons

Minimum credit score requirement of 730
Charges an origination fee of 1% to 2%
Doesn't allow co-signers

Laurel Road

9.49% to 24.50%APR Range
UndisclosedMinimum Credit Score
$5,000 to $45,000Loan Amount Range
36 to 60 monthsRepayment Terms
Within 7 DaysTime to Receive Funds

Laurel Road offers personal loans from $5,000 to $45,000 with repayment terms of 36 to 60 months. These loans come with interest rates between 9.49% and 24.50%, and borrowers can benefit from a 0.25% discount by setting up autopay. Typically, the funding time for these loans can take up to seven business days. Laurel Road does not charge origination fees or prepayment penalties, but there is a $20 nonsufficient funds fee and a late fee of either $5 or $28.

Pros

Offers 0.25% autopay discount
No origination fees or prepayment penalties
Option to change payment due date

Cons

High minimum loan amount
Late fee of $5 or $28
Charges a $20 nonsufficient funds fee

How to Get a Personal Loan Fast

You can reduce the wait time for needed funds and address your financial needs more quickly by following some of these steps:

AVOID PAYDAY LOANS

When seeking quick funds, it's wise to avoid payday loans despite their fast funding and no-credit-check appeal. Payday loans come with shorter repayment terms and significantly higher interest rates, which can lead to a cycle of debt that's challenging to escape.

FAQ About Personal Loans

We compiled answers to some frequently asked questions about personal loans to provide valuable insight and help you make informed decisions.

How does my credit score affect my personal loan application?

Can I apply for a personal loan if I'm self-employed?

How long does it take to get approved for a personal loan?

What should I do if I find errors in my loan application?

What happens if my personal loan application is rejected?

The content on this page is accurate as of the posting/last updated date; however, some of the rates mentioned may have changed. We recommend visiting the lender's website for the most up-to-date information available.

Editorial Disclosure: Opinions, reviews, analyses and recommendations are the author’s alone and have not been reviewed, endorsed or approved by any bank, lender or other entity. Learn more about our editorial policies and expert editorial team.