When you need to borrow money soon, knowing how long the loan process takes from start to finish can help you manage your expenses. While each application is different, the type of lender you borrow from tends to affect your turnaround time more than anything else. Overall, the typical turnaround time is around 1 to 3 business days for online lenders, 1 to 2 weeks for peer-to-peer lenders, and 1 to 4 weeks for banks and credit unions.
Below is a breakdown of typical turnaround times for the pre-approval, approval and funding stages.
| Type of lender | Pre-approval | Approval | Funding | Total turnaround time | |
|---|---|---|---|---|---|
| Online lender | A few minutes | 30 minutes to 2 business days | 24 hours | Around 1 to 3 business days | Compare personal loans |
| Peer-to-peer lender | Not applicable | A few minutes to 24 hours | A few business days | Around 1 to 2 weeks | |
| Bank or credit union | 1 to 5 business days | A few business days to a few weeks | 1 business day to a few business days | Around 1 to 4 weeks | Learn more about bank personal loans or credit union personal loans |
During this stage, the lender reviews your finances on a high level and gives pre-approval based on what it sees so far. Pre-approval does not mean you’re guaranteed the loan. Getting pre-approved for a personal can take anywhere from a few minutes to a few business days, depending on the type of lender.
Typically get pre-approved in: A few minutes.
Online direct lenders are generally the fastest option to get a loan. Filling out the application takes around 5 to 10 minutes, and once you submit it, you can receive a pre-approval decision within minutes. Online direct lenders are able to do this because they use software to scan your financial information. Compare personal loans from online lenders.
Typically get pre-approved in: Not applicable.
There are very few peer-to-peer lenders in Canada, and pre-approval may not apply. With GoPeer, Canada’s first regulated P2P consumer lending platform, you create an account, fill out a simple application and provide your consent at the end to go through a hard credit check. GoPeer will then review your application to give approval.
Typically get pre-approved in: 1 to 5 business days.
One of the drawbacks of borrowing from a bank or a credit union is that the process to get a personal loan can take much longer. Banks often have stricter eligibility requirements than online lenders and might take more time reviewing your application to make sure you meet their criteria.
The approval stage takes longer because lenders are going through your financial information in more detail to see if they can give you official approval. Getting approved for a personal loan can take anywhere from a few minutes to a few weeks, depending on the lender.
Typically get approved in: Around 30 minutes to 1 to 2 business days
Online direct lenders typically advertise quick approval and funding as a benefit to applying with them. Loan Away, for example, says it can give approval within 20 to 30 minutes, while Mogo aims to review and approve your application within hours. Compare personal loans from online lenders.
Typically get approved in: A few minutes to 1 business day.
GoPeer says it can give you an instant decision if all your information is accurate. If it requires more information, approval can take up to 1 business day.
Typically get approved in: A few business days to a few weeks.
Traditional financial institutions like banks and credit unions rely on staff to underwrite their loans, and since they have stricter eligibility criteria for loans, approval can take longer, from a few business days to a few weeks.
| Response | Male | Female |
|---|---|---|
| Speed of approval and funding | 20.65% | 17.16% |
Funds can be received anywhere from the same day to a few days, depending on your lender.
Typically get your money in: 24 hours
Once you’re approved, the lender transfers your funds directly into your bank account. Typically, this kind of transfer takes less than 24 hours. Compare personal loans from online lenders.
Typically get your money in: A few business days
Since peer-to-peer loans rely on individual investors for funding, getting your money can take a little more time. According to GoPeer, it can take a few days for funds to get transferred to your account.
Typically get your money in: 1 business day to a few business days
If you already have an account with the bank or credit union, you might be able to get your funds much faster than if you choose a different bank to get a loan from. This is because your bank will be familiar with your financial situation and won’t have to transfer the loan to a different bank account, which can take some time. You may even be able to get your money as soon as the next business day.
Aside from the type of lender you apply with, how long it takes to complete the personal loan process will depend on your:
From start to finish, it can take anywhere from 1 business day to a few weeks to get a personal loan. Online lenders are generally the fastest.
Keep in mind funding speed should not be the only factor to consider when getting a personal loan – you’ll want to consider interest rates, fees, loan terms and the reputation of the lender. To learn more about how personal loans work and to compare lenders, check out our comprehensive personal loans guide here.
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