Personal loan approval timeline
Getting a personal loan is a fairly straightforward process that involves a couple of steps. After you’ve supplied the required application and documentation, lenders will review your submission and verify your documents. If eligible, you may be able to get a personal loan approved and funded as soon as the day you apply, but funding could take up to a week.
What is a personal loan?
A personal loan provides consumers with money they can use for virtually any purpose, which is paid back in fixed monthly payments. Personal loans are usually unsecured, meaning your lender won’t ask you to offer any collateral (e.g., vehicle, home). Personal loan companies lend as little as $250 and as much as $100,000, with repayment terms ranging from six to 84 months.
Application submission and initial review
The first step in getting a personal loan is filling out and submitting your application to the lender. How long this takes is up to you. You can usually fill out the application within 10 minutes to an hour, granted you have all of your required documents at the ready.
Applications vary by lender, but most require the same documentation and personal information, such as your legal identification, proof of address and income information. Once submitted, lenders conduct an initial review. Some provide instant preapproval decisions, while others take up to one business day.
Document verification and underwriting
After your initial application review, the lender verifies your documents and assesses your creditworthiness through a process called underwriting. This involves checking your credit report, confirming your employment and income and calculating your debt-to-income ratio.
Online lenders with automated systems often complete this process the same day, while traditional banks may take several business days. During this stage, lenders may request additional documentation to verify your financial information before making a final decision.
Approval decision and funding
Once underwriting is complete, you’ll receive an approval decision. This can happen immediately with automated systems or take up to seven business days with manual review. Approval means the lender has agreed to give you the loan, but you won’t receive funds until you review and sign the loan agreement.
After signing, funding typically takes one to five business days, though some lenders offer same-day or next-day funding. Your bank’s processing time may also affect when funds become available.
Personal loan approval time by lender type
Lenders with a simple online application and automated approval process generally offer the quickest funding speeds. These include mainly online lenders, but some banks and credit unions also provide same-day funding to their existing customers.
If speed is your priority, online lenders generally provide the quickest path from application to funded loan, though banks and credit unions may offer more competitive rates or personalized service.
Which lenders offer personal loans?
You can get a personal loan from many finance companies, such as banks, credit unions and online lenders.
- Banks: Most banks offer personal loans, and funding may be as quick as the same day. While major banks often allow you to apply online, smaller community banks may require an in-person application. Larger or more complicated loans are often manually reviewed by banks. So, funding could take several days or up to a week.
- Credit unions: The main purpose of credit unions is to offer readily accessible banking and financing solutions, like personal loans, to consumers. As with banks, while you may be able to get funding on the same day, it could take a few business days or up to a week if you need to apply in person or your loan is manually reviewed.
- Alternative online lenders: Many financial technology (fintech) lenders offer online personal loans with funding as quickly as the same day. This type of lender focuses on providing fast money, so the application process is usually quick and simple. If your loan doesn’t fit the automatic approval criteria, funding could take a day or two longer.
Here’s a breakdown of approval timelines by lender type:
| Lender type | Approval time | Funding time | Example institutions |
|---|---|---|---|
| Online lenders | Instant to same day | 1 to 2 business days | SoFi, LendingClub, Upstart, Upgrade |
| Banks | 1 to 3 business days | 3 to 7 business days | Wells Fargo, Bank of America, Chase, U.S. Bank |
| Credit unions | 1 to 3 business days | 2 to 5 business days | Navy Federal, PenFed, Alliant, Golden 1 |
Beware payday and title loans
While you can potentially get same-day personal loan funding from payday lenders and auto title loan companies, do your best to avoid these loans because they usually carry extremely high interest rates and fees. Consumers who get personal loans from these types of lenders often get stuck in a cycle of borrowing that’s difficult to escape.
To avoid getting caught in a debt trap, exhaust all other funding options before considering a payday or title loan. For example, you might borrow money from family and friends, seek help from a local nonprofit or even take on a second job. Additionally, you might consider getting a lower-cost payday alternative loan (PAL) from a credit union.
» COMPARE: Best personal loan companies
How funding method affects loan speed
Even with a fast approval, the way your lender delivers funds determines when you’ll actually have access to your money. Your choices and timing can make the difference between same-day funding and waiting over a week.
Direct deposit vs. check vs. wire transfer
Direct deposit is the fastest option, delivering funds within one to two business days through electronic transfer to your bank account. Physical checks take five to seven business days since they require mailing and bank processing. Wire transfers provide same-day or next-day funding but typically cost $15 to $30 in fees.
For quickest access, choose direct deposit and verify your bank account information is accurate.
Lender cut-off times and processing schedules
Most lenders have daily cut-off times — typically between 2 p.m. and 5 p.m. EST — for processing same-day transactions. Applications completed and approved before the cutoff time may receive same-day or next-day funding, while those processed after will be delayed until the next business day.
Additionally, lenders don’t process transactions on weekends or federal holidays, so applying early in the week increases your chances of receiving funds before the weekend.
What do you need to apply for a personal loan?
You’ll need to provide personally identifiable information and details about your debt and income when applying for a personal loan. Some of the most common things you’ll need to include with your loan application are your:
- Name
- Taxpayer identification number (e.g., Social Security number)
- Phone number
- Home and mailing address
- Government-issued photo identification
- Job history (e.g., employer names, job start dates)
- Gross monthly income
- Proof of income (e.g., pay stubs, tax returns)
When you apply for a loan, take the time to accurately and thoroughly fill out the application. If there are errors or you forget to provide some information, it may take your lender longer to process your application or your loan application might even be declined.
How can you get a personal loan faster?
The funding speed of your personal loan largely depends on the lender you choose, your qualifications, the accuracy of your application and how quickly you provide the lender with any required documentation.
Prequalification and preapproval can speed things up, but the biggest factors you can control are how quickly and accurately you fill out the application and respond to your lender’s requests for information.
Prequalification and preapproval explained
Prequalification and preapproval are preliminary evaluations that help you understand your loan options before submitting a full application.
Many lenders will prequalify you for a personal loan via a soft credit check, which doesn’t have any impact on your credit score. After providing some basic information, the lender will let you know if you’re prequalified for a personal loan and offer estimated rates and terms.
Preapproval goes slightly deeper, often requiring more documentation, but still uses a soft inquiry in most cases. Both processes take just minutes and allow you to compare offers from multiple lenders without impacting your credit.
By prequalifying first, you can identify which lenders are most likely to approve you, avoiding wasted time on full applications with lenders who may deny you.
Tips for speeding up approval
One of the easiest things you can do to get a personal loan faster is to have all the necessary documents on hand before you start working on the application. After you’ve gathered all the information you’ll need, carefully ensuring your application is accurate will help speed up the process.
“We often see decision delays because we need additional information,” said Matt Lattman, vice president of personal loans for Discover. “Gathering all of your documents can speed up the application process. One of the biggest factors in receiving a decision quickly is if the application is complete.”
Another thing you can do to increase your odds of getting approved quickly for a personal loan, according to Lattman, is to “do your homework before you apply.” Doing your homework on a personal loan could include such things as:
- Checking your credit score and resolving any issues: An easy thing to do before you apply for a personal loan is to check your credit score. You’re entitled to a free credit report every year from each of the three credit bureaus, which you can request from AnnualCreditReport.com. This allows you to know where your credit stands and resolve any issues before applying for a personal loan.
- Searching for a lender offering the loan amount and terms you want: Every lender offers different personal loan options. By ensuring you can get the amount of money and repayment term you need, you can avoid going through the process only to find out the lender doesn’t offer the right financing.
- Choosing lenders that offer online applications: Online applications are faster than in-person or phone applications thanks to instant data verification, automated decisions and immediate document uploads. Many online lenders provide approval within minutes rather than days. You can also complete the process at your convenience and easily apply to multiple lenders to compare options without visiting branches or scheduling appointments.
Ultimately, the best way to get a personal loan faster is to do everything in your power to make your lender’s job easier. This includes applying for a loan that fits your needs, ensuring your application is accurate and complete, providing all the required documentation upfront and quickly responding to your lender’s requests.
FAQ
How does a personal loan affect my credit?
When you get a personal loan, your credit score may decrease slightly because of a hard credit inquiry from the lender. Your credit score is likely to improve if the personal loan replaces revolving debt (lowering your credit utilization ratio) and you make your payments on time. Conversely, your credit score might worsen if you make your loan payments late.
What credit score do I need to get a personal loan?
While each lender has a different credit score requirement, you’ll generally need a score of at least 580 to 660 to qualify for a personal loan. Many lenders share their minimum credit score requirements upfront, so you know if you’re eligible before applying. You can also usually see if you qualify with no credit score impact, as many lenders use a soft credit check to pre-qualify you.
Does a personal loan come with fees?
Some lenders charge fees for their personal loans, such as origination fees, application fees, prepayment penalties and late fees. Origination and application fees are charged upfront to process your loan, whereas prepayment penalties and late fees are only charged if you repay the loan early or make a late payment.
You can compare personal loan costs by evaluating the annual percentage rate (APR), which includes the interest rate and any required fees, such as origination and application fees.
How much will a $10,000 loan cost per month?
A $10,000 personal loan typically costs between $170 and $310 per month, depending on your interest rate and repayment term. For example, with a 10% APR on a three-year loan, you'd pay approximately $323 per month. With the same rate on a five-year loan, your payment drops to around $212 per month.
Your actual monthly payment depends on the interest rate you qualify for based on your credit score, income and debt-to-income ratio, as well as the loan term you choose. Longer terms result in lower monthly payments but higher total interest costs over the life of the loan.
Which bank is easy to get a personal loan from?
Online lenders like Upstart, Upgrade, and LendingClub are generally easier to get approved with than traditional banks, as they often accept lower credit scores and use alternative underwriting criteria beyond just credit history.
Among traditional banks, Wells Fargo and Discover offer relatively accessible personal loans for existing customers. Credit unions like Navy Federal and PenFed also tend to have more flexible approval criteria for members.
However, "easy" approval often comes with higher interest rates. The easiest lender for you depends on your specific credit profile, income and existing banking relationships.
How do I check if I qualify for a personal loan?
The fastest way to check if you qualify is to get prequalified with multiple lenders, which typically requires only a soft credit check that won't affect your credit score. Most lenders offer online prequalification that takes just a few minutes and provides estimated rates and terms.
You can also check your own qualifications by reviewing your credit score (most lenders require at least 580 to 600), calculating your debt-to-income ratio (usually must be below 40% to 50%), and confirming you have steady income. Many lenders list their minimum requirements on their websites, allowing you to compare before applying.
Article sources
ConsumerAffairs writers primarily rely on government data, industry experts and original research from other reputable publications to inform their work. Specific sources for this article include:
- Citi, “How long does it take to get a personal loan?” Accessed Oct. 30, 2025.
- Achieve, “From application to approval: find out how long it takes to get a personal loan.” Accessed Oct. 30, 2025.
- Today’s Bank, “Personal Loan Approval Guide: Improving Your Chances of Qualification.” Accessed Oct. 30, 2025.
