Pressing needs and emergencies are uncalled for, and when they come knocking, you will need to sort them out as soon as possible.
When you need money urgently, you’ll most likely be going for a personal loan. The time it takes to process a personal loan is usually quicker than other types of loans. However, how soon you’re going to have your hands on this money depends on different factors.
Are you wondering how long does it take to get a loan and receive the money? If yes, read more for everything you should know before applying for an urgent loan.
The Type of Lender
The time it will take before getting your loan approved depends on the lender you’re working with. Different lenders have their own procedures for giving out loans and have different types of paperwork put in place.
Online direct lenders can be your savior in times of emergency. They have the fastest turnaround time for loans since their processes are automated. It can take you less than 10 minutes to get your application processed and loan approved.
As soon as your application is reviewed and approved, it will take you a few hours or around two to three business days to get your loan. The delay may be caused by bank transfers or lack of some essential documents at the application time, which may need further verification.
Peer to Peer Lenders
This is another easy method of getting a personal loan, usually involving a transaction between peers. If you have all the required information ready, the application process and getting your loan approved will take a few minutes. The process works almost as fast as online lending.
Having your money after the application is approved can take between a few business days to a few weeks. Most peer to peer lenders rely on investors to fund them, which amounts to the long wait time.
It is possible to find a peer to peer lender that can give you a loan as soon as the next business day. You should carry out enough research to find a lender that can help you get the money faster.
Banks and Credit Unions
The application process and getting your loan approved through banks and credit unions take a little longer. These lenders work with more strict credit standards, and reviewing your application takes a long process.
Another reason for the delay may be the lack of technological advances put in place to quicken the application process. They mostly rely on their staff to underwrite all the general information, and this takes a lot of time.
Once your loan is approved, getting the money into your account is not a big issue. It won’t take too much time before you can get the money transferred. It even takes a shorter time if you’re transferring the money to an account with the lending bank.
If the money is being transferred to an account in a different bank, it will take a couple of working days to finalize the transaction. If all goes well, you can be lucky enough to get your money as soon as the next business day.
How Long Does It Take to Get a Loan? It Depends on Your Preparedness
How prepared you are at the time of loan application is a determining factor for the amount of time you will need to get your loan approved. You should ensure you have all the documents and the necessary information required when applying for the loan.
Have everything ready with you when you visit the loan agency to avoid going back and forth to collect one document after another. This will not only waste your time but increase your loan turnaround time.
Your Credit Score
Some lenders need to go through your credit score before giving you a loan. The process of checking your credit score can be time-consuming, hence delay the loan disbursement.
If you happen to have a low credit score, the lender may send you other documents asking for additional information. You need to give the lender enough information so that they can verify all your details and process your loan faster.
Source of Income
The answer to how long does it take to get a loan approved also depends on your income. The lender must verify your source of income before you can get your loan approved. If you don’t have a stable income or you’re self-employed, getting a loan may take longer.
Those with stable income sources can get their loans approved faster because they can easily verify their details. This even becomes easier for those taking payday loans as they use their salary as a guarantee.
When you’re applying for a loan and need it as fast as possible, you need to be very careful with your application to avoid making errors. Don’t get too stressed out and confused during the application process that you miss out on some important information in the application.
You can convince yourself that if time is money, you need a loan. But if you’re not careful, you will not get the cash. Go through every detail on your application after you’ve finished filling out the form to verify everything.
Make sure it’s clear and accurate before you submit it so that you won’t be called back to make corrections.
Expedite Your Loan Application Process
You don’t need to panic when there is an emergency or an event that requires financial attention. You can always apply for same day loans and get the cash within hours of application.
Of course, this only happens if you put things like the type of lender, the amount, and the type of loan you need in mind. Sometimes getting a fast approval may be impossible when you consider factors like bank transfers, application processing, and your credit score.
We are here to give you answers on “how long does it take to get a loan” or any other burning question you may have concerning loans. You can go through different blogs on our website or call us with all your queries.