How many times have heard the words “Learn to be patient?” personally I’ve been told this so many times. But does it apply when you are in financial need? It applies but not always. Money is involved in nearly all aspects of life. When you are asking me to be patient when I need funds, it’s like you want me to pause living. The point is, sometimes financial needs cannot be postponed. It requires a lot to wait for sure. But if you are borrowing money, there are so many important factors for consideration. You may have to be patient for hours, days or weeks depending on the conditions under which your creditor lends or factors revolving around yourself.
In this blog, we want to respond to a very important question – How Much Time Will It Take for My Personal Loan to Get Approved? Maybe you are in urgent need of funds. How long do you have to wait? Do all loans require the same approval time? These questions will be answered in the course of this discussion. So, let us begin.
Knowing the time, it takes for the loan to be processed and get to your account is essential for planning purposes. It determines how you are going to manage your operational costs whether as an individual or as a business. Unfortunately, lenders hardly give this information. Each application is distinct and so the lender you are dealing with has a significant influence on the turnaround time.
How Long It Takes
So, in response to the question – How Much Time Will It Take for My Personal Loan to Get Approved, it depends. It may take a day, a week or a few weeks. And we have mentioned, the type of lender plays a significant role in this regard. For instance, peer-to-peer lenders can only take minutes to approve loan applications and have funds deposited in your account.
In contrast, banks and other financial institutions such as credit unions may take some week to approve your application. So, what makes the difference between the two? Well, online creditors use the algorithm in processing loans whereas banks use their staff to underwrite. Is that satisfactory response? Let break it further…
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- Online Lenders
In general, direct lenders may take only minutes to a few business days to approve your loan. This is the fastest option out there. You need a maximum of 15 minutes for borrowers who have the basic information and the necessary documentation. For many lenders, it only takes minutes for the loan to be approved. However, some will want to go through your application first before looking at your documents. Once your application is approved, it may take a day to get the funds. In case the application is accepted in the morning, you are more likely to get funds the same day.
- Peer-to-peer
This also another loan option that takes a very short time to approve applications. Generally, it takes only minutes to some business days for your application to be approved. The time taken here is relatively longer compared to online lenders. Nevertheless, approval does not require any extra thing. If you want faster approval, then have all the information and the documents required at hand. It is also common for some lenders to demand more time before responding to your application. You may have to be a little bit patient to access the funds here. Peer-to-peer lenders depend on investors for funding and so it may take as long as a week. However, some deposit the funds as soon as the following business day.
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- Banks
Banks often take days to weeks. This one of the most challenging factors people has to put up with when borrowing from banks. But why is this the case when banks have been in the industry for many years? You would expect that they become more efficient than other lenders. Well, there are several reasons why they often take longer. For instance, credit standards and requirements are always higher compared to online lenders. It requires a lot of time to review borrowers’ information to ascertain whether they meet all the standards. What is more, banks do not utilize the technology that allows faster processing of loans. As we mentioned earlier, they depend on their staff to underwrite the loans and this demands more time. Once your application is approved, it takes a day or more to get the funds in your account.
- Credit Unions
Credit unions work the same way as banks. They also require days to weeks to approve applications. They also do not utilize technology in reviewing borrowers’ information and processing loans. Like banks, they use their staff in underwriting. Once your application is approved, it may take a day or some days to access the funds.
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In light of the above, a personal loan can be approved the same day, after some days or weeks. You can also access funds either the same day, after some days or weeks. Lenders you are dealing with determines the approval time and receipt of funds. They cannot tell you the exact time you will receive funds but they can give you a glimpse of how long it is likely to take. Additionally, your credit score is very important. Lenders may demand more information if your score is not good enough. So, work on improving your credit to avoid delays in verifying your creditworthiness. Your source of income is also critical and the lender will always want to verify it. We hope the discussion has been helpful.
It is important to know how long it is likely to take for your application to be approved and finally get the funds. This information can help you plan effectively. From the discussion, the lender plays a significant role. However, as a borrower, you can make it easier for lenders to approve your application. For instance, do you consider your level of preparedness before sending the application? Lenders always review your application as well as your documentation before making decisions. So, make sure you have all the necessary information that lenders need. Get the kind of information from best personal loan singapore that you require.