How Long Does It Take To Get a Loan?

Typical Loan Timelines

Here’s a look at how long it usually takes to get different kinds of loans:

Personal Loans

• Online Lenders: 1 to 3 business days, sometimes same-day.
• Banks/Credit Unions: 3 to 7 business days.

Because personal loans are unsecured, lenders mostly rely on credit checks and income verification. Online platforms often automate these steps, which is why funds can arrive so quickly.

Payday Loans or Cash Advances

• Often same-day or within 24 hours.
  These are high-cost options, but they exist for people who need money immediately.

Auto Loans

• Dealership Financing: Same day in most cases.
• Bank or Credit Union: 1 to 5 business days.
  Car loans tend to be processed quickly because the vehicle itself serves as collateral.

Mortgages

• Average: 30 to 45 days.

Mortgages take longer due to appraisals, title searches, and underwriting. In rare cases, fast-track programs can close in as little as 15 days, but that requires everything to line up perfectly.

Home Equity Loans/HELOCs

• 2 to 6 weeks.

These loans require reviewing property value and verifying home equity, which adds extra time.

Student Loans

• Federal Loans: Timing depends on the school’s disbursement schedule, usually tied to semester start dates.
• Private Student Loans: 2 to 10 business days after approval.

How to Speed Up the Loan Process

• Get Documents Ready in Advance: Have income verification, bank statements, and identification on hand before applying.
• Check Your Credit Report: Make sure there are no errors that could slow down underwriting.
• Apply With an Online Lender: If speed is the priority, digital lenders are usually faster than traditional institutions.
• Respond Quickly to Lender Requests: Delays often happen when applicants take too long to provide additional information.
• Choose Direct Deposit: It’s almost always the fastest funding method.

When Waiting Might Be Worth It

Fast isn’t always better. Sometimes, the loan option that takes a little longer comes with better interest rates, higher borrowing limits, or more flexible repayment terms. For example, if you’re buying a home, waiting the extra weeks for a mortgage approval makes sense compared to rushing into a high-cost loan.

FAQs About Loan Timelines

Can I get a loan the same day I apply?

Yes, but usually only with payday loans, some online personal loans, or auto dealership financing. Same-day funding is rare with traditional banks.

Do weekends and holidays delay loan funding?

Most lenders only process applications and transfers on business days. If you apply late on a Friday or right before a holiday, you may not see funds until the next banking day.

Does having bad credit slow down the process?

Not necessarily. Approval might take longer if the lender requests extra documentation, but many lenders that serve borrowers with poor credit still fund loans within a few days.

Why do mortgages take so much longer than other loans?

The process involves multiple third parties, including appraisers, title companies, and underwriters. These additional steps extend the timeline well beyond what you’d see for personal or auto loans.

What happens if I forget to submit a required document?

Your application will likely be put on hold until the missing information is provided. This is one of the most common reasons loan funding gets delayed.

Final Thoughts

The time it takes to get a loan can be anywhere from a few hours to several weeks, depending on the type of loan and the lender. If you need money urgently, personal loans from online lenders or short-term cash advances are typically the fastest. For larger, more complex loans like mortgages or home equity loans, patience is part of the process.

The key is to balance your need for speed with the terms and costs of borrowing. Preparing your paperwork, knowing your credit standing, and choosing the right lender can make the process smoother—and help you get the funds when you truly need them.