Personal loans are a very accessible kind of financing, and applying for and getting approved for one takes very little time. Most banks and nearly all internet lenders can fund personal loans in five to seven business days. Additionally, lenders might occasionally even provide same-day cash.
Read this guide below to understand the time duration usually taken for instant loan approvals.
Time Duration for Instant Loan Approval
It takes most loan applications a few minutes to complete, and you can have the money deposited electronically into your bank account within two or three days. However, the exact timing depends on what type of lender you’re working with.
Online lender
- The deadline for approval is one to two working days. Funding time: within a period of one to three working days.
- Within one to three business days of your acceptance, the majority of lenders will lend you money. It means that your application has been submitted and all documents have been reviewed, which may take a day or more if anything is missing.
The next-day funding is often advertised, but it depends on whether you apply or how the bank processes your deposits. You will not be able to see the personal loan in your account for two or three more business days, even if you have been approved and funds are sent on the next working day.
Credit union
- The date of approval: 1 to 3 business days.
- Funding time: three or more working days.
The largest source of personal loans is the federal credit unions, but smaller local and regional credit unions also offer them. Funding is not as fast as online lending, as is the case with banks.
However, if you have an account and can take direct deposits, a credit union can be quite quick. A few days can be added to the process if you pick up your cheque and sign a loan document in person.
Bank
- The period for which approval is necessary is 1 to 3 business days.
- Funding duration: three or more working days.
A growing number of banks are now offering personal loans that come with quick prequalification and funding. It’s usually a little longer than with an online lender, but you can get better interest rates, especially if you already have a checking or savings account.
The processing of applications and funding of loans is, however, taking longer for banks. In addition, they require better credit than online lenders, which makes it more difficult to get a loan.
Ways to get Loan Approved Quickly
Before starting to apply, most lenders will give you a list of documents that are necessary for your application. Nevertheless, for each lender, some basic elements of information need to be collected and prepared in advance.
- A driver’s licence
- Evidence of income, such as check stubs or bank statements
- Proof of address, for example, utility bills or mortgage payments
- Proof of employment.
It is better to have more information available when you apply. The quickest way to obtain funds will be to submit an accurate application. In addition, because lenders often have a prequalification process, you can apply for several applications at the same time, and this will not affect your credit. This will save you time and make it easier to find the best rates.
Eligibility Check for a Personal Loan
The eligibility to avail of a personal loan is as follows.
- Credit score verification
- Submission and verification of documents
- Loan approval
- Loan disbursal
The best thing about personal loans is that you can get them quickly, apart from the fact that there’s no collateral.
Conclusion
You’ve got to make sure your documents are in order as a borrower and you’ve got a good credit score. To make the process of obtaining and repaying a loan as seamless and painless as possible, good lenders such as Fibe offer not only the most competitive interest rates to such people but also several value-added services and customer support.
In addition, the application process is now possible to complete via the Internet so that it can be resolved and paid for promptly. The Fibe instant personal loan app offers an instant personal loan up to a maximum of INR 5 lakh via a fully online application, which is processed in approximately five minutes, and the funds are disbursed within 24 hours.