How Long Does It Take to Approve a Personal Loan?

Every day, thousands of people hit “submit” on their application for a personal loan, then immediately start refreshing their email. Some get approval notifications before they’ve even closed their laptop. Others end up waiting days, wondering if something went wrong.

Personal loan approval times will vary depending on the type of lender you go for. Online lenders might approve you in under an hour, while traditional banks could take up to a week. Credit unions usually fall somewhere in between.

But the lender isn’t the only thing that matters. Your credit history, the documents you provide, and even the time of day you apply can all affect how quickly you hear back. Some factors speed things up, others slow them down, and knowing the difference can help you avoid unnecessary delays.

What Impacts Personal Loan Approval Time?

Why do some people get approved in minutes while others wait for days? It comes down to a few key things lenders look at when reviewing your application.

Your Credit Score and History

Lenders spend the most time reviewing applications from borrowers with lower credit scores or complicated financial histories. Automated systems can often approve you instantly if you have excellent credit and a steady income. But if there are red flags in your credit report, a human underwriter needs to take a closer look, which adds days to the process.

Application Completeness

Missing information is the biggest cause of delays. Lenders can’t move forward until they have everything they need, so incomplete applications get pushed to the back of the queue while they wait for additional documents or clarification.

Loan Amount

Smaller loans will often get approved faster because they are less risk to the lender. Large loan requests typically require more thorough review and additional verification steps.

Income Verification Requirements

Lenders need more time to verify your earnings if you’re self-employed, work on commission, or have multiple income sources. W-2 employees with steady paychecks usually sail through this step much faster.

Lender’s Current Volume

Even the fastest lenders can experience delays during busy periods. Peak times like tax season or the end of the year often mean longer wait times overall.

How Long It Takes to Get a Personal Loan By Lender Type

Not all lenders operate the same way. Where you apply for a personal loan makes a big difference in how long it takes for an answer.

Lender Type	Typical Approval Time	Funding Time	What to Expect
Online Lenders	15 minutes – 2 business days	1-7 business days	Fast automated decisions, streamlined applications, and digital document upload
Traditional Banks	2-7 business days	1-5 business days	More thorough review process, can require an in-person visit, existing customers often get faster service
Credit Unions	1-5 business days	1-3 business days	Personal service, competitive rates for members, can be slower for complex applications
Peer-to-Peer Lenders	1-7 business days	2-5 business days	Investor funding model can add time, thorough credit review process

Keep in mind that approval time and funding time are two different things. You might get approved quickly, but you still need to wait for the money to hit your account. Online lenders typically have the fastest overall process, while traditional banks might take longer but offer more personalized service.

How long does it take to get a personal loan online?: Step‑by‑Step Breakdown

Getting a personal loan online happens in stages, and each one takes a different amount of time. Here’s what happens from the moment you click “apply” to when the money hits your bank account.

Step 1: Pre-qualification Check (1-5 minutes)

Most online lenders will start with a soft credit check to see if you qualify and what rates you could get. This doesn’t hurt your credit score and gives you a quick idea of your options. Some lenders show results instantly, while others might take a few minutes to process.

Step 2: Complete Personal Loan Application (5-15 minutes)

Once you decide to move forward, you’ll fill out the full application with details about your income, employment, personal finances, and situation. Having your information ready beforehand speeds things up.

Step 3: Document Upload (5-30 minutes)

You’ll need to provide documents like pay stubs, bank statements, or tax returns. Most lenders let you upload these digitally, which is much faster than mailing or faxing. The time here depends on how organized your paperwork is.

Step 4: Identity and Income Verification (Minutes to 24 hours)

Lenders verify your identity and income through automated systems when possible. If you have straightforward W-2 income, this often happens within minutes. Self-employed borrowers or those with complex income sources might have to wait longer for a manual review.

Step 5: Underwriting Decision (15 minutes to 3 business days)

This is where lenders decide whether to approve your loan and at what loan terms. Automated systems can approve strong applications almost instantly. Applications that need human review take 1-3 business days.

Step 6: Final Approval and Loan Documents (Same day to 1 business day)

Once approved, you’ll receive your loan agreement to review and sign electronically. Most people can complete this step the same day they’re approved.

Step 7: Funding (1-7 business days)

After you sign the documents, the lender transfers money to your bank account. Some lenders offer same-day or next-day funding, while others take up to a week. ACH transfers are most common and typically take 1-3 business days.

Tips to Speed Up the Loan Approval Process

Want to fast track your personal loan application? A few simple steps can save you days of waiting and improve your chances of loan approval.

Get Your Documents Ready First

Before you even start applying, get all of the paperwork you’ll need together. This includes recent pay stubs, bank statements, tax returns, and identification. Having everything ready to upload means you won’t get stuck waiting to find documents while your application sits incomplete.

Apply During Business Hours

Lenders process applications faster during regular business hours on weekdays. Applying late Friday afternoon or over the weekend might mean waiting until Monday for any manual review steps (this will depend on the lender).

Choose the Right Loan Amount & Monthly Payments

Don’t ask for more money than you need, or choose a shorter loan term than you can afford. Larger loan amounts ($15,000 and up) trigger additional review requirements that can slow down approval. Stick to what you actually need for your specific purpose, like if you need $5,000 for debt consolidation, and can pay it back in installments over 36 months.

Double-Check Your Information

Mistakes on your application create delays. Review everything twice before submitting, especially your income figures and employment details. One typo can send your application back for clarification.

Respond Quickly to Lender Requests

If a lender asks for additional information or documents for your loan offer, send them over as soon as possible. Each day you delay is another day added to your approval timeline.

Check Your Credit Report Beforehand

Review your credit report for errors before applying. If you find mistakes, dispute them first rather than trying to explain them during the application process.

Get Approved for a Loan Fast with Yup Loans

Tired of waiting days to hear back from lenders? Yup Loans connects you with lenders in minutes¹, even with bad credit. Get matched with a lender who actually wants to work with your situation instead of wasting time with applications that go nowhere³.

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