Personal loans are of many types- and how much time it would take for such a debt to get approved depends on many factors. Mortgage loans, car loans, installment loans and payday loans are primarily personal loans. Approval requirements for these loans are different. Therefore, while we take approval time into consideration, we have to take only those who are granted loans. The lender firstly verifies the details of the applicant and then based on his credit, capacity, and collateral- wherever applicable- calculates the amount that can be lent to him.
From the time of application to getting approval could be a period of a few minutes to a few weeks. Let us know the major factors responsible for it.
Type of Lender:-
All those come under personal loans are issued both by conventional lenders as well as alternative lenders. It is a well-known fact that traditional lenders take longer time than private financing companies. For the same amount of a mortgage, for example, with an excellent credit and collateral, a bank would take more time to approve compare to a private mortgage company. The private lenders compete hard to make things faster, and that is why a borrower get approval faster.
Type of Loan:-
If we compare the approval time of a payday loan with the approval time of a car loan- both from private lenders- it is the payday advance that would get approval faster. As lenders do not run through your credit and don’t deal with paperwork, an approval can be given instantly. On the other hand, a car loan application is processed over a longer time to verify details, car title, credit score etc. Therefore, not just lender, approval time differs when the loan type is different.
Loan Amount:-
Even with the same financing company, if you apply again for an installment loan asking for a higher amount, it might take a little longer. The lender might pause for a while to check and re-establish that you are not going to default the loan. However, if you become a regular customer of lenders such as CashAmericaToday, then you can still get an instant approval even for a higher amount.