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A personal loan can be a useful way to cover costs when you don’t have sufficient funds in the bank. If you’re in a bind, you’ll want to get money without delay – so just how long does it take to get a personal loan? Join us as we look at how long it takes to receive funds and factors that can affect the process.
How quickly can my personal loan to be processed and sent to me?
In most cases, you can have your loan application entirely processed and approved within the space of 24 hours. This is a major reason why personal loans are such a popular type of financing, as you can receive money to serve any number of purposes within one day. Once you submit your application, you’ll receive an instant outcome in as little as 60 seconds confirming whether your application was successful or not.
It’s important to note that several factors can potentially influence the time it takes to receive your personal loan. Lenders will set eligibility criteria for their borrowers to meet in order for them to proceed with their application, so meeting all of these comfortably is likely to result in an automatically processed approval. Similarly, displaying to your lender that you’re comfortably earning enough to service your loan consistently is more likely to satisfy the automatic criteria put in place for your loan.
The lender you choose and the institution you’re banking with will both also dictate the speed of your application. Not all lenders will be able to process their loans within the 24-hour time frame, while some banks and credit unions take longer to process larger transfers, meaning the funds hitting your account could be delayed by a further day.
How do I apply for a personal loan?
There are several key steps along the way to applying for your personal loan. Being prepared can help you save time when commencing the application process.
Compare your options
First and foremost, you should compare as many loan options as you can before committing to one. This will help give you an idea of which offers are the most affordable and suitable to your needs.
Choose your lender
Once you’ve decided on your lender, you can commence your application straight away. You will generally be able to do this online via your lender’s website. It should take you no more than five to ten minutes to fill in the application form.
Gather your documents
Before you hit submit, you’ll also need to produce the documents required to complete your application. These may vary between lenders, but as standard you’ll need to produce the following:
- Your driver’s licence and/or passport
- Your last two payslips
- Details on outstanding liabilities (other debts such as loans)
- Internet banking account information
- Proof of address (such as via a recent utility bill)
Bank statements and employment contracts may also be required
Submit, receive an outcome and sign off
After submitting your application you’ll receive an instant outcome notifying you of whether you were successful. If your lender approves your application, you’ll be sent through your final loan contract, which you can then sign digitally and return to your lender. From here, your lender can advance the funds directly to your account – in some cases, on the same day you apply.
What factors can slow down the personal loan approval process?
Several factors can delay your loan approval, such as:
- Incomplete application: make sure you complete all sections of the application form submit all required documents promptly.
- Financial situation: if you are self-employed or have a non-traditional income source, it might take longer to verify your income.
- Poor credit score: lenders check your credit score to assess your risk. Lower credit scores may require additional scrutiny, extending the processing time.
- Larger loan amounts: it may take lenders more time to review applications for bigger loan amounts.
To help speed up the loan approval process, you should:
- Check your credit score: the better your credit score, the more chance you have of being approved quickly.
- Maintain stable employment: lenders look for stability in applications, so if you’ve undergone numerous job changes in a short time, your application may take longer to process.
- Have your documents ready: being prepared with all the necessary documents will prevent any delays at this stage of the process.
- Choose the right lender: compare lenders and choose one that suits your circumstances and is known for quick approvals and disbursements.
- Only apply for what you can afford: don’t apply for a loan amount outside your means. If your lender doesn’t believe you’re capable of repaying the loan, you’re less likely to be approved.
- Respond quickly: make sure you respond promptly to any requests from the lender for additional information or documentation.
More of your questions about personal loan processing times
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Written by Fact checked
This guide provides general information and does not consider your individual needs, finances or objectives. We do not make any recommendation or suggestion about which product is best for you based on your specific situation and we do not compare all companies in the market, or all products offered by all companies. It’s always important to consider whether professional financial, legal or taxation advice is appropriate for you before choosing or purchasing a financial product.
The content on our website is produced by experts in the field of finance and reviewed as part of our editorial guidelines. We endeavour to keep all information across our site updated with accurate information.
Approval for personal loans is always subject to our lender’s terms, conditions and qualification criteria. Lenders will undertake a credit check in line with responsible lending obligations to help determine whether you’re in a position to take on the loan you’re applying for.
The interest rate, comparison rate, fees and monthly repayments will depend on factors specific to your profile, such as your financial situation, as well as others, such as the loan’s size and your chosen repayment term. Costs such as broker fees, redraw fees or early repayment fees, and cost savings such as fee waivers, aren’t included in the comparison rate but may influence the cost of the loan. Different terms, fees or other loan amounts may result in a different comparison rate.
