How Much Time Does It Take To Get A Personal Loan?

Sometimes life may throw curveballs your way. If you urgently need money for a sudden expense, you might consider getting a personal loan. Applying and getting approval for a personal loan can be a breezy process, although it is determined by certain factors and the lender you pick. While some loans may warrant weeks to fund, others only take days. When you learn the time frame of the funding for different lenders, it can help you plan the personal loan application process. Here’s a look at how you can apply for a personal loan and how long it is expected to take.

The Duration of A Personal Loan

The amount of time it takes for an individual to get approval for a personal loan and receive their funds can vary — from as quickly as the same or next business day to a week or more. The location of your bank can also impact how soon you receive your loan. Once your lender transfers the funds, the money will be processed and posted by your bank to your account. This can be done fairly fast by some banks, while others may need an additional few days for your disbursement time frame.

Online lenders: Usually less than 5 days

Online lenders fall under non-traditional banking institutions; they may function completely online or as a wing of a traditional banking institution. A majority of online lenders don’t have physical branches. Therefore, these lenders have fewer overhead costs. This typically enables them to offer competitive products and lower interest rates. However, this setting implies that you can’t visit a local branch if you have a query or want to visit them in person to make a payment on your loan.

Banks and Credit Unions: 1 to 7 Days

Personal loans to borrowers are offered by both traditional banks and credit unions. These institutions usually have brick-and-mortar branches, which can be great if you like managing your account in person. Remember that if the loan you’re applying for is from a credit union, a membership is mandatory to qualify.

Other Ways to Avail of A Personal Loan

Other than traditional and online banks or credit unions, you can look for personal loans via non-traditional products such as car title loans, payday loans, or pawnshop loans. However, these kinds of loans should only be thought about as a last resort.