How long does it take to get a loan?
Most lenders can approve and fund your loan within a couple of hours up to a couple of days. While each application is different, the type of lender you borrow from tends to affect your turnaround time more than anything else.
Nowadays, lenders generally approve or disapprove applications using an algorithm, rather than a human being who assesses your situation (known as an underwriter). A common exception to this rule is non-standard (read “bad credit”) loans, where specialist lenders look at more than just your credit score and may even want to chat over the phone before getting out their “approved” stamp.
How long does a personal loan application take?
Most personal loan applications will take less than 15 minutes, regardless of whether you’re applying for a regular personal loan or a short-term loan. However, the precise time it takes to complete a loan application will vary between different lenders, and will also be affected by the personal details and documents you need to provide as part of the process.
How long does it take for a loan to go into my account?
Once your application has been given the green light, the actual funding is simply a question of how quick the lender’s processes are for example whether they can transfer funds on a non-business day. This varies based on the type of loan you’ve applied for, and the lender itself:
Loans from a major bank
UK banks don’t have the best reputation for efficient customer service, especially if you catch them outside of the hours 9-5, Monday to Friday. However, getting a loan from the same bank that holds your current account may actually be the fastest payday loans in New Mexico option available to you.
The bank has already verified your identity, and if you have a good track record with it, you may in fact already be effectively pre-approved for loans up to a certain amount. If you apply through your online banking or app, then a good bank should auto-complete much of the application form on your behalf, and you could receive the funds in a matter of minutes. If you opt for a big bank that you aren’t an existing customer of, then the process is likely to take a couple of working days.
Loans from a credit union
Credit unions are an alternative to traditional banks and high-street lenders, and offer similar products and application processes. However, unlike a regular bank, credit unions are non-profit financial institutions designed to benefit its members, and you may receive more personalised customer service.
You can generally apply for a credit union loan online or at a branch. When you apply for a loan through a credit union, you’ll generally have to complete an application similar to those required by the big banks. This means it’s likely to take anywhere from 1-5 business days to apply and get approved for a credit union loan.
Loans from an online-only direct lender
These companies are all about a “friction-free” user journey, and have carved out a space in the market by being faster and cheaper than the big banks. They also know that a significant number of their customers will apply for a loan after work, so many but not all can issue loans outside of normal working hours.
Loans from a peer-to-peer (P2P) lender
Peer-to-peer lenders involve a platform (read “website”) where lenders and borrowers are brought together to invest or borrow money at bank-beating rates at least that’s the theory.
Guarantor loans
Typically funded in: 1 business day – 2 weeks.Guarantor loans almost always involve a human underwriter assessing applications, rather than an algorithm alone.