There are several reasons why financial emergencies might arise. However, these emergencies come unannounced and can affect your mental health and financial condition. When you are faced with a financial emergency and don’t know how to proceed, you can always choose the option of a personal loan from a reliable provider.
As you apply for a personal loan, it is always important to consider specific factors, including the personal loan approval time. One of the most common questions that borrowers have is, “how long does it take to get a personal loan approved?” The answer to how much time it takes to get a personal loan depends on several factors, including the type of loan, the profile of the applicant, and the lender.
What is the Average Time for the Approval?
This will depend on different factors, including the lender, the financial profile of the applicant, and the application process. In some cases, personal loans provided by online lenders take only a few minutes or some hours. In these cases, the funds are disbursed the same day or the next business day.
On the other hand, traditional financial institutions or banks might take longer to approve personal loan applications, typically around some days to even weeks. Some more factors that affect the loan application process are your credit score, the application’s accuracy, the internal processes of the lender, and the income verification process. Pre-qualification or pre-approval can expedite the loan approval process.
Why Does Personal Loan Approval Take Time? Key Factors
Some factors that determine the personal loan approval time are:
1. Loan Eligibility Criteria
When your loan amount is higher, additional documentation or paperwork might be needed. This also holds true when your profile might not meet the eligibility criteria for the loan approval process. In this case, the approval timeline might increase naturally.
2. Processing Timeline of the Lender
- Every lender or financial institution has its own set of standard processes for loan approval.
- Lenders might also follow timelines to analyze different applications as they disburse the loan amount.
For this purpose, it is always recommended to choose reliable lenders that offer a speedy loan approval process. For example, Stashfin offers a simple loan approval process that is designed for quick and efficient access to funds. The exact processing time can vary depending on specific circumstances; most applicants receive loan approval within a few hours. The funds are also disbursed shortly after.
3. Accuracy of the Documents
Any incorrect or incomplete document you submit will only delay the processing time for loan approval. Therefore, you should always double-check the documents before submitting them.
4. Credit History
When you portray a poor credit score, the bank or the lender might spend some time assessing the repayment capacity of the borrower. This might increae the time for loan approval.
How Fast Can You Get a Personal Loan Approved?
The speed of the personal loan approval will depend on factors like the borrower’s profile, the lender, and the overall application process. In some cases, online lenders like Stashfin offer faster loan approval process. In some cases, the decision for loan approval is made within minutes or hours. When all important documents are available, the funding might be disbursed the same day or the next business day.
Credit unions, banks, or traditional lenders can take longer to ensure loan approvals. This is because they follow a more stringent process when it comes to approving a personal loan. Pre-approved loans are capable of moving faster as the lenders might have already assessed the creditworthiness of the borrower.
Proven Tips to Get Your Personal Loan Approved Faster
If you have questions like “how long does it take to get a personal loan,” you should follow some tips to expedite the approval process. Here are some:
1. Apply for the Personal Loan Online: With the traditional setting, applying for a personal loan involves visiting a bank or the financial institution physically and submitting all paperwork. On the other hand, when you choose a reliable online personal loan lender like Stashfin, you can apply for a personal loan anytime at your convenience. You can complete the application process with a few clicks to speed up the process.
2. Apply with a Co-applicant: When you apply for a personal loan with a co-applicant, it improves your overall eligibility while making the loan approval process faster. When you do not meet the lender’s eligibility requirements, you can choose a co-applicant with a strong credit history to support your loan application.
3. Ensure a Healthy Credit Score: When you maintain a good credit score of over 650, you can get instant personal loan approvals. The credit score is based on several factors, including your repayment history, the credit mix, and the credit age.
Can a Personal Loan Be Approved in 24 Hours? Myth vs. Reality
Yes, you can get personal loan approval within 24 hours from reliable providers like Stashfin. The overall process here is designed to be quick and hassle-free. With Stashfin, you can get instant loan approvals with the help of paperless applications when you apply online.
How Do Online Personal Loan Applications Speed Up the Process?
With an online loan application process, the approvals indeed speed up. The success is due to the involvement of technology to simplify every step, right from the application to the approval. Leading fintech platforms, like Stashfin, use automated systems to verify income levels, identity, and creditworthiness of the borrower instantly.
Conclusion
The personal loan approval time will vary depending on certain factors, including the lender’s eligibility criteria, the application process, and the financial profile of the borrower. If you need funds urgently, you can trust reliable online lending platforms like Stashfin for a hassle-free, smooth loan approval process.
Frequently Asked Question
How long does it take to get a personal loan approved online?
Typically, online loan approval processes are faster than traditional processes. Some lenders offer loan approvals within minutes.
Does my credit score affect loan approval speed?
Yes. The borrower’s credit score is a major determinant of the speed of loan approval. When you boast a good credit score of more than 650, you can get instant loan approvals.
Can I get instant loan approval without income proof?
Instant loan approval without proper income proof can be difficult. However, with reliable lenders, you can achieve this. Digital lending platforms like Stashfin also look into additional factors like your repayment history and credit score to approve a loan.
Why do personal loan approvals get delayed even with good credit?
Your personal loan application can be delayed even with a good credit score due to factors like inaccurate or incomplete documentation, high application volumes, or differences in your personal details.