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How Long Does It Take to Receive a Personal Loan?

How Long Does It Take to Receive a Personal Loan?
Lauren Ward
Lauren WardUpdated March 14, 2023
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Editor’s note: Lantern by SoFi seeks to provide content that is objective, independent and accurate. Writers are separate from our business operation and do not receive direct compensation from advertisers or partners. Read more about our Editorial Guidelines and How We Make Money.
How long it takes to get a personal loan depends on the type of lender you choose. Some lenders disburse funds within a few days after you’re approved. Others can take up to seven days. Read on to find out how long it takes to receive funding from different lenders, and ways to help speed up the process. 

How Long It Takes for a Personal Loan to Be Approved

How long does it take to get approved for a personal loan? While many lenders have a similar application process, they often have different methods and timelines for approval. Some online lenders offer same-day approval, while others can take up to three days. Banks and credit unions can take as long as seven days. If one of your reasons to apply for a personal loan is to get your money quickly — say, you need to winterize your house and freezing temperatures are fast approaching — it’s important to ask your lender exactly how long the process may take.

How Long It Takes to Get Personal Loan Funds 

The length of time it takes to get personal loan funds after approval also varies by lender. That's something to keep in mind as you consider where to get a personal loan. Here’s a look at the approximate timeline to get your funds from a bank, online lender, or credit union.

Credit Unions 

Credit unions require you to become a member before you take out a loan, which means you have to meet their membership requirements and apply to join. Once you’re approved as a member, you can apply for a personal loan. Credit unions usually disburse loan amounts in up to seven business days.  

Online Lenders 

With an online lender, you can typically get approved for a loan and receive your money quickly. Some online lenders offer same day funding, but getting your funds could take as long as five business days. To further speed up the process, some lenders offer paperless personal loans.  


Similar to credit unions, getting loan funds from a bank may take up to seven business days. If you have an account with the bank and they already have information on your income and credit history, you may receive your money faster.  

Same-Day Loan Funding Options

How long does it take to get a personal loan from other types of lenders? For the quick loan options below, the entire process can take place on the same day. However, there are some drawbacks to consider.  

Car Title Loans 

A car title loan is a secured loan that uses your car for collateral. The amount you can borrow with a car title loan depends on your car’s worth. Car title loans are short-term—generally no more than 30 days—and high interest. There is no credit check with this type of loan, so you may be approved and get your funds quickly. But it might be tough to pay the loan in such a short timeframe. And if you can’t repay it, the lender could seize your car. 

Payday Loans 

With a payday loan, a lender looks at your monthly income to determine your eligibility. However, you will only be able to borrow a portion of your next paycheck,  and you’ll be required to pay back the full loan amount by your next payday, generally in two to four weeks. You likely also be charged high interest and numerous fees. In fact, the total amount you have to repay could be three or four times as much as the loan amount.Recommended: Getting Out of Payday Loans

Pawn Shop Loans 

A pawn shop loan uses a valuable item you own as collateral for lending you money. The loan is usually based on a percentage of the item’s worth. Pawn shop loans often come with high interest rates. And you could lose your valuable item if you fail to repay the loan.

Online Lenders

Some online lenders are able to offer same-day funding. Interest rates can vary depending on how strong your credit is. If your credit is poor, they may charge you high interest to offset their risk in lending to you. 

Tips for Fast Personal Loan Approvals 

How long does it take to get approved for a personal loan? Your personal loan application status depends on a number of factors, but it is possible to make the process faster by considering the following:


Each lender has different requirements. While your credit score and proof of income may be enough for one lender, it may not be for another. Before you apply, be sure to review the lender’s eligibility requirements as well as any documentation you need to provide to help make the process faster and smoother. 

Fix Credit Issues 

Qualifying for a personal loan is easier if you have a clean credit report. However, it’s not uncommon for borrowers to have mistakes on their credit reports. This could damage your credit score and make it difficult to get approved for a loanReview your credit report to make sure there aren’t any mistakes on it. You can get a free copy at If you find a mistake, report it to the credit bureau.

Know Your Loan Amount 

If you know the exact amount you need to borrow, that information may speed up the loan approval process. During prequalification, the underwriter looks at certain criteria to determine a borrower’s eligibility. But if you change the loan amount you need along the way, the underwriter will need to review your application again to determine if you are still eligible, which will take more time.

Fill Out the Application Correctly 

Making sure your application is free of errors can prevent delays later. If there is a mistake in your form, the lender may send it back to you to fix. Before submitting your application, double check that all information you entered is correct and complete. 

Get Preapproved 

Being preapproved for a loan may make the application process faster. Preapproval shows that you can qualify for a loan, and it also allows you to check interest rates from different lenders. Typically, preapproval only takes a matter of moments. 

Lantern’s Personal Loans

When you’re shopping for a personal loan, Lantern by SoFi can help make the process quicker and easier. In our online marketplace you can get offers from multiple lenders to find a loan with rates and terms that best suit your needs. Once approved, you may receive your loan in as little as 24 hours.  Find and compare personal loan options with Lantern.

Frequently Asked Questions

How long does it take to receive a personal loan after approval?
How long does it take to get a personal loan from a private lender?
How can you speed up the personal loan process?

About the Author

Lauren Ward

Lauren Ward

Lauren Ward is a personal finance expert with nearly a decade of experience writing online content. Her work has appeared on websites such as MSN, Time, and Bankrate. Lauren writes on a variety of personal finance topics for SoFi, including credit and banking.
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