Banks. Brick-and-mortar banks are a popular source of personal loans, but the processing time from application to funding is usually longer than with an online lender. Typically, it can be funded one to five business days after submitting your application, assuming it's approved.
The loan approval process can vary from lender to lender and will depend on the type of loan you're applying for and your circumstances. This can take anywhere from a few hours to a week or so depending on the type of loan and lender you choose.
Credit Score and History
Your credit score is a numerical representation of your creditworthiness and is based on factors such as your payment history, credit utilization, length of credit history, and types of credit accounts. A strong credit score, typically above 700, increases your chances of loan approval.
HDFC Bank customers can get Personal Loans with minimal or no documentation. In fact, if they are pre- approved for a Personal Loan, they can easily apply for it.
The application likely won't take more than 10 minutes to fill out, especially if you have the information you need on hand. If you apply online, you may receive a decision within minutes. Most lenders send the funds to your account within one to three business days of approval.
Your bank will inform you when your personal loan is approved via the communications channel you have indicated, so be on the lookout for any messages in that vein. Once approved, your loan amount will also be deposited into your bank account shortly.
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The Bottom Line
Although there are various reasons for getting denied when applying for a personal loan, five of those reasons include a low credit score, low income, a high debt-to-income ratio (DTI), an unstable work history, or an inability to meet basic requirements.
The approval procedure is initiated by the lender once you submit the loan application with the necessary documents. Based on the lender you choose, it can take two to three working days to get the approval and may take longer if you fail to submit the right documents.
Fortunately, getting approved for one and receiving the funds is typically a quick process. You could get money the same day you apply for a personal loan or within two five business days — depending on the lender and how long it takes to approve your application.
Different lenders have different processes in place for loan approvals. Some lenders take a little longer to review your materials and process your application. They may also take longer to approve larger loan amounts. In many cases, the type of lender you use can also impact your approval timeline.
How long does a loan approval take? If you have correctly submitted all your information, the loan application takes takes 24-48 hours.
The time it takes to get unconditional approval from your bank or lender can vary – it might take as little as a day, or it might take a week or longer, depending on how much information your lender already has, how busy they are processing applications, and how long it takes them to undertake the necessary checks on ...
Most banks require applicants to have good to excellent credit (a 690 credit score or higher), though some banks may accept borrowers with fair credit (a 630 to 689 credit score). Banks may evaluate your debt-to-income ratio and whether you have enough cash flow to take on new debt.
The easiest banks to get a personal loan from are USAA and Wells Fargo. USAA does not disclose a minimum credit score requirement, but their website indicates they consider people with scores below 640, so even people with bad credit may be able to qualify.
With HDFC Bank, you get XPRESS Personal Loan up to ₹40 Lakh and repay it through pocket-friendly EMIs across flexible tenures. At HDFC Bank, we bring to you a fully digital and streamlined application process to help you get access to funds from anywhere, at any time; 24/7 even on bank holidays!
To qualify for a personal loan, you generally need a minimum credit score of at least 580 — though certain lenders have even lower requirements than that. However, your chances of getting a low interest personal loan rate are much higher if you have good to excellent credit, typically a score of 740 and above.
Using Online Portals and Mobile Apps (for Other Banks)
Many banks offer online portals or mobile apps where you can log in and check your loan status directly. You have to enter your loan application number to access your loan details.
Getting approved for a personal loan generally takes anywhere from one day to one week. As we mentioned above, how long it takes for a personal loan to go through depends on several factors, like your credit score. However, one of the primary factors that will affect your approval time is where you get your loan from.
Most lenders process loans on business days, which are Monday through Friday. Applying for a loan early in the week can help it get processed faster because the lender can start working on it immediately. Applying on a Friday, weekend or before a holiday will slow things down.
You may be able to get a personal loan without income verification if you pledge collateral, use a co-signer or have an excellent credit score. There are several ways to get approved for a personal loan with no proof of income, including applying with a co-signer and securing the loan with collateral.
If you're in a pinch and need cash fast, a same-day loan could provide the money you need on the day you apply. Just keep in mind that exactly when you receive your money often depends on when you apply and how fast (or not) your personal bank processes the funds.
Emergency loans might be available from banks, credit unions and online lenders. Loan types, fees and repayment schedules vary by lender.