Instant Personal Loans: How Fast Can You Actually Get Funds?

With most personal loans, it will take two to five days to get your money after your application is approved. Some lenders offer to approve your personal loan and send your money within the same working day when you apply.

However, a number of factors can delay the process. These include the time it takes for your personal loan lender to process your application, and to complete the credit check. Even if your lender completes this step quickly, however, it might take a few days for your bank to process the payment and make it available for you.

What Is an Instant Personal Loan?

An “instant” personal loan is a personal loan in which the lender immediately makes a decision on whether to approve the loan. These lenders aim to assess your application and send you your funds quickly.

An instant personal loan works in the same way as a standard personal loan. You can apply online for this type of loan, and your lender will perform a credit check to determine if you qualify for the loan and what interest rate they can offer you.

If you are approved for the loan and accept it, the lender will send you a lump sum of money. You must then pay this money back, generally in equal monthly installments over a set period, which is typically a few months to several years. You’ll pay interest on the loan, and sometimes fees.

How Fast Can You Get and Use a Personal Loan? 

Some lenders offer fast processing times for personal loans. Among these lenders are:

• Rocket Loans: With Rocket Loans, you can get up to $45,000 as soon as the same day you apply.
• LightStream: LightStream’s loans can be disbursed as soon as the same day you apply. Same-day funding is available if your application is approved, you sign the loan agreement, and you complete the verification process by 2:30 p.m. Eastern time and schedule funding by 3 p.m.

However, while lenders may be able to process your loan application the same day you apply, two factors may slow down a personal loan application:

• Finding a loan: Taking time to research lenders, interest rates, and the terms of your loan may save you a significant amount of money in the long term.
• Transfer times: Lenders will often send your money via Automated Clearing House (ACH) transfer. While this is potentially quicker than a wire transfer, it’s not instant. You’ll have to wait for your bank to accept the transfer and give you access to the funds, which can take a few days.

So, even if you are approved for a loan on the same day you apply, the process to receiving the money normally takes at least a few days.

Pros and Cons of Instant Personal Loans

As with any financial product, instant personal loans have pros and cons. 

Pros Explained

• Fast funding: Funds from your instant personal loan can be available within a day or two of applying for the loan, which may be helpful in an emergency.
• Cheaper than credit cards: The interest rates on instant personal loans are generally much lower than those on credit cards, which will save you money in the long term.
• Convenience: You can research and apply for a personal loan online, which is more convenient than visiting a bank branch.

Cons Explained

• May require good credit: Although many lenders say they can process your application within one working day, this generally applies to applicants with good credit. If you have bad credit, your lender will typically look into your application in more detail, which can slow down your application.
• Smaller choice of lenders: Only a few lenders offer same-day turnaround times for loans, so your choice of lenders is more limited if you want this kind of loan. You may have to either pay a higher interest rate or settle for loan terms that don’t fully meet your needs.

How to Get an Instant Personal Loan

The process of applying for an instant personal loan is largely the same as applying for a regular personal loan. You should first determine how much you need. You can generally borrow $1,000 to $50,000 with a personal loan, though higher amounts are available that may require good credit and take longer to approve.

Then, review your finances to make sure you can comfortably make the monthly loan repayments. Next, research and compare lenders. You can use our review of the best fast personal loans to compare prices and terms. 

You’ll then want to try to pre-qualify for the loan if the lender offers pre-qualification. Most lenders will perform a soft credit check to assess how much you can borrow and what interest rate they can offer. 

Finally, you can apply online by filling out the lender’s application form. Generally, the applications are straightforward and require personal information like your Social Security number and income, among other data.

How Do People Use Personal Loans?

Investopedia commissioned a national survey of 962 U.S. adults between Aug. 14, 2023, to Sept. 15, 2023, who had taken out a personal loan to learn how they used their loan proceeds and how they might use future personal loans. Debt consolidation was the most common reason people borrowed money, followed by home improvement and other large expenditures.

Alternatives to Instant Personal Loans

If you need cash quickly, an instant personal loan is often a good option, since these loans generally have lower interest rates than alternative sources. However, if you don’t want to use an instant personal loan or can’t qualify, you can consider other financing options. They include:

• Cash-advance apps: These apps let you borrow money ahead of your next paycheck, and they can be available quickly. However, cash-advance apps have higher interest rates than personal loans, especially if you’re not able to make payments on time.
• Credit cards: Some credit cards offer a 0% interest introductory period. If you can pay back your loan within this period, they can be a good deal. Make sure you pay back your balance before the offer ends, however, or you’ll have to pay the standard interest rate.
• Payday loans: Payday loans also provide money quickly, but they have high interest rates. Payday loans are also not available in all states.

The Bottom Line

Some personal loan lenders aim to process your application and make your funds available on the same day you apply. They may be considered instant personal loans because your application can be approved instantly, but you’ll still have to wait for the funds to clear before you can access them.