How Long Does it Take to Get a Personal Loan?

Find out more information about how long it takes for a loan to be deposited in your account here with Savvy.

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, updated on October 4th, 2023       

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How long does it take for my personal loan to be processed and sent to me?

In most cases, you can have your loan application entirely processed and approved within the space of 24 hours. This is a major reason why personal loans are such a popular type of financing, as you can receive money to serve any number of purposes within one day. Once you submit your application, you’ll receive an instant outcome in as few as 60 seconds confirming whether your application was successful or not.

It’s important to note that several factors can potentially influence the time it takes to receive your personal loan. Lenders will set eligibility criteria for their borrowers to meet in order for them to proceed with their application, so meeting all of these comfortably is likely to result in an automatically processed approval. Similarly, displaying to your lender that you’re comfortably earning enough to service your loan consistently is more likely to satisfy the automatic criteria put in place for your loan.

The lender you choose and the institution you’re banking with will both also dictate the speed of your application. Not all lenders will be able to process their loans within the 24-hour time frame, while some banks and credit unions take longer to process larger transfers, meaning the funds hitting your account could be delayed by a further day.

How do I apply for a personal loan?

There are several key steps along the way to applying for your personal loan, so you should be across the process before commencing it blindly.

Compare your options

First and foremost, you should compare as many loan options as you can before committing to one. This will help give you an idea of which offers are the most affordable and suitable to your needs. Fortunately, you can do this right here with Savvy. We break down the rates, fees, loan terms, borrowing ranges and any other key features of our lenders’ personal loans to help you more easily compare them.

Choose your lender and fill out their form

Once you’ve decided on your lender, you can commence your application straight away. You’ll be able to click through to your lender’s page from our site, after which you can fill out their application form. This should only take you no more than five to ten minutes to do so.

Gather your documents

Before you hit submit, you’ll also need to produce the documents required to complete your application. These may vary between lenders slightly, but you’ll need to produce the following:

  • Your driver’s licence and/or passport
  • Your last two payslips
  • Details on outstanding liabilities (other debts such as loans)
  • Internet banking account information
  • Proof of address (such as via a recent utility bill)
  • 90 days of bank statements and employment contracts may be required

Submit, receive an outcome and sign off

Once you’ve met all of your lender’s requirements, you can send through your application. You’ll receive an instant outcome notifying you of whether you were successful. If your lender approves your application, you’ll be sent through your final loan contract, which you can then sign digitally and return to your lender. From here, your lender can advance the funds directly to your account.

Top tips for speeding up the application process

Only apply for what you can afford

The key to maximising your chances for approval is to not apply outside of your means. If your lender doesn’t believe you’re fully capable of repaying the loan you’re asking for, you’re far less likely to be approved. You can use our borrowing power calculator to determine what you’re likely to be approved for.

Maintain stable employment

If you’ve endured several recent job changes which have resulted in a fluctuating income stream, lenders will take more time to scrutinise your application and finances. They look for stability in applications, which suggests that the borrower won’t have any trouble servicing their loan throughout their term, thus satisfying automatic approval in many cases.

Gather (and double-check) your documents

Ensuring you have all of the right documents on hand to submit alongside your application is a simple way to minimise the back and forth between you and your lender. Additionally, you should check through them thoroughly to find out whether any have mistakes that could potentially delay or sink your application.

Apply early in the week

Perhaps the easiest way to maximise the speed of your loan application is to apply earlier in the day or week. This reduces the likelihood of the process taking multiple days and nights. For example, a Monday morning application is more likely to be settled faster than a late Friday afternoon one.

Frequently asked questions about personal loans

How old do you have to be to get a loan in Australia?

You must be at least 18 years old to apply for a personal loan in Australia. This is the case for loans generally also. Some of the other eligibility criteria that you’ll need to meet are:

  • Australian citizen or permanent resident
  • Employed and earning at least $20,000 p.a. from stable sources
  • No history of defaults or bankruptcy
Do credit checks slow down the application process?

No – credit checks are a key part of the personal loan application process, as they enable your lender to determine not just how reliably you’ve been able to repay your debts in the past, but also verify other key pieces of information. For instance, lenders want to find out your recent residential history, as several moves in quick succession will suggest instability and can alert them to a potential issue.

Will paying off one loan make it easier to get another?

Yes – repaying your loan on time and in full will help boost your credit score significantly and indicate to future lenders that you’re capable and responsible enough to service debts. Having a recent loan repaid successfully on your file is likely to help you get approved for your next loan at a lower interest rate and potentially greater borrowing power.

How can I use a personal loan?

In basically any way you like – personal loans aren’t limited to emergency purposes. For instance, you might like to put funds towards your wedding and honeymoon, developing your career or education, moving house or simply consolidating multiple debts under one loan agreement. They’re flexible by design, giving you free rein to distribute them however you like.

Are there any faster types of personal loans?

Yes – small loans are a different type of loan designed for less substantial expenses and can be processed more quickly than personal loans on average. With small loans available from $300 to $5,000 and terms of 16 days to two years, you can apply, get approved and have your funds sent to you within the hour. These loans come with fixed fees, which are in place instead of interest, so you’ll always know how much you’ll be paying. These loans are also useful in the case of an emergency.

How much can I borrow?

Borrowing power for personal loans can range from as little as $2,000 up to $75,000 for unsecured finance. However, factors such as your credit score, income, job stability and expenses will all play a role in determining how much you’ll be eligible to borrow.

How quickly can I repay my loan?

Similarly, while loan terms range from one to seven years in length, the amount of time you’ll be approved for will depend on what’s most affordable for your finances. However, you can compare lenders who offer no fees associated with paying out your loan early, giving you an option to repay your loan ahead of schedule and save a meaningful amount on interest overall. Long-term loans are also generally reserved for customers with strong financial profiles.

How long will it take to get a secured personal loan?

Secured loans are likely to take longer to process than unsecured loans, due to the requirement for your lender to assess the suitability of your security. However, it won’t take too much longer overall and you could still have your loan funds sent through in one to two days.

Helpful personal loan guides