Personal loans serve as a lifeline, providing us with the necessary funds to bridge the gaps in our lives. Considering this, its approval timeline matters a lot.
So, how long does it take to get approved for a personal loan? It largely depends on the specific policies and protocols of the lender. Some approve personal loans within 24 hours. However, there are also other institutions where the process moves slowly, from 1-14 business days. Typically, these institutes have a more complex approval process.
How Long Does Personal Loan Approval Take
Evidently, personal loans are for emergency situations. The money meets your urgent needs. Here, the approval time matters. If you get the loan after six months or one month, it serves none of your goals. So, let’s find out how long it takes to get approval for a personal loan. Besides, learn if a personal loan is fixed or variable.
Banks
Regular banks are a popular choice for getting a personal loan quickly. If you have repaid loans on time and have a good relationship with the bank, you can get approval quickly. Sometimes, you can get the loan on the same day. But if the bank wants to check your credit history more carefully, it might take 3-5 business days. So, tidy financial records will sweep the decision in your favor fast.
Credit Unions
Credit unions are usually smaller in size than banks. They mostly serve specific local communities. They might have specific rules for who can become a member, like a particular profession or income range. Hence, you might not always be eligible to join a credit union or enjoy its perks.
So, you must be a member first. Also, their loan approval is usually very slow. Being a small and concentrated organization, a credit union assesses all loans methodically, taking a huge time. However, you can expect to get a personal loan from a union within 1-2 weeks.
Online Loan Providers
Getting an online personal loan can be a smart move, especially for consolidating debt, covering unexpected expenses, or financing a vacation. However, you must consider how repayments fit your budget and their impact on your credit.
Personal loans offer accessibility, quick access to funds, and fixed payments over a set period but involve high-interest rates. Longer loan terms also mean more total interest paid. In general, online lenders take 1-5 business days, depending on the documentation. Also, can I get next-day personal loans?
Other Lenders
There are also other options to get personal loans like pawn shops, individual lenders, etc. But they usually charge a sky high-interest rate. However, you can get the money on the spot. Also, missing due dates will cause massive trouble. So, timely payments are paramount.
Why to Take a Personal Loan
Here are the five motives for taking a personal loan.
Debt Consolidation
Are you dealing with high-interest credit card debts or any other high-interest debt with high-interest rates, for instance, more than 20% or even more annually? Then, here is smart financial advice for you: consider a personal loan.
So you can combine all these debts and get the total payable amount. Your total payable amount for two high-interest loans is $30,000. Now, apply for a personal loan for $30,000 or a bit more that has a much lower interest rate.
Thus, you can determine the repayment duration and ensure the monthly amounts fit your budget. This is not just about saving money on interest but making your financial life easier. You only pay a single amount monthly.
Preparing for Good Day
Getting married is a big deal, but it can also drain resources. US weddings often cost more than $30,000, covering things like your wedding outfit, the food, and drinks. A personal loan can help you here.
Also, you can use the personal loan for specialized training or education for a good job later on with a bigger salary. You can fulfil your dream of travelling to the most thriving places by using the loan.
Invest in Long-term Assets
Is your house broken, or is your car broken? Or is the barn roof leaking? Whatever the problem is, your fixed assets need emergency attention before the damage becomes even more costly. Ignoring repair might cost you significantly later. The solution? Take a personal loan and fix those issues.
Making Massive Purchase
Imagine that you’re stuck working from home, and your air conditioner suddenly stops working, and it is hot in Florida. Or you are in Alaska; the central heater is not working properly, requiring a full replacement.
Also, you may want to upgrade your entertainment system or buy a professional gaming console. Hence, these are expensive instruments. So, arranging that much money suddenly is a tough job. You need not worry; a personal loan can help you in this matter.
Paying Emergency Expenses
Health problems are not something you plan for, and health insurance often fails to cover an unexpected medical expense.
Whether you have dental bills, specialist visits, pharmacy costs, or expenses related to a new baby, a personal loan can provide the financial support you need. It is a true relief for you as you can concentrate on what truly matters.
Final Words
So, how long does it take to get approved for a personal loan? We hope that our explanation makes you understand the whole scenario. Depending on your lender and your credit scores, you can get approval for the personal loan within 1-14 working days.
Consider one of these lenders based on your timeframe. For example, emergency medical needs require urgent money. But a broken car can wait a few weeks before getting fixed. Always remember hurried loans often carry bigger interests and secret fees.