When applying for a loan, many want to know how they can get the funds faster. To speed up the loan process, there are a few things that you can do.
Applying for an online loan usually takes a few minutes, but how you go about it can determine how quickly your loan request might take to be processed.
How long does it take to get a personal loan?
After you have applied and the lender has reviewed and approved the application, the amount of time it takes to get the funds when looking at borrowing options can be from a few hours to a day or two. Most lenders will deposit the funds in your account by the next day.
How to speed up the personal loan approval process?
The actual process with online lenders is actually fairly quick, especially when compared with most banks. Personal loan applications are fairly easy to complete, and applying only takes a few minutes on average.
If there is one thing that can help to speed up the process, that would be to ensure the accuracy of the information that you enter. Nothing slows down the approval process like being denied simply because details provided were missing or inaccurate.
What is the personal loan approval process?
When you apply for a personal loan, you would provide details about your income, employment, residence and a few other things to the lender. With online loans, this can include using IBV, or instant bank verification. This allows the lender to review your bank statements to identify other details like debt, payment history and similar info that can help with determining whether you might be approved for a loan. If your application is approved, you would usually receive the funds deposited in your account by the next day. Some lenders use an e-transfer method and are able to provide your loan sooner.
Why does the online loan process take so long?
Every lender has their own way of doing things, from how they review applications to how they disburse funds. In comparison with banks, the online loan process tends to be quick. If you wanted to apply with a bank, you’d need an appointment to speak with a representative first. This would take from a few days to a week or so before you can meet. After you’ve completed the application the bank will usually take a few more days and up to a week or more before a decision is made. If you’re approved, that’s likely a few more days before you see the funds.
With online lenders, many disburse the loan when approved by ACH, which is a form of electronic payment. This is typically done once a day and one of the main reasons that might delay the funds getting to you.
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Does credit score impact the loan process?
If you have a lower credit score, sometimes lenders will take longer to review your application before making a decision. This can result in your application being denied and requiring you to go through the process again with another lender, creating delays to get the funds. Your debt to income ratio can also affect your eligibility, so in some situations it can make sense to improve either before applying if it isn’t an emergency and time allows.
What factors help with approval?
You should start with checking and meeting the requirements before applying. For many lenders this can involve being of legal age, employed for at least 90 days with current employer, having a debt to income ratio usually below 30%, earning enough each month the lender is confident you can afford the debt payments, and in many cases that your credit score also meets their requirements. While many lenders look for employment and mainly concerned with a regular income, some will consider benefits like odsp and similar.
Ensuring that you have completed the application properly and accurately is often one of the most important steps to take if you hope to avoid delays with the process.