An advantage of personal loans is quick, convenient funding if you're approved. Many lenders let you apply online and process your application relatively quickly. Let’s look at how to apply for a personal loan and how long each step takes.
How to apply for a personal loan
The application process can differ somewhat between lenders, but in general, here's what it looks like to apply for a personal loan:
Put together the documents you need: To apply for a personal loan, you typically must supply proof of identity, address and income.
Lenders usually provide a list of acceptable documents for each category. For example, a passport, voter ID or government-issued ID may all serve as proof of identity; utility bills or rent receipts may work as proof of address and paystubs (usually your 2 most recent) or bank statements (usually your 3 most recent) can serve as proof of income.
Fill out the application: Attach the required documentation and complete an application form.
Submit the application: You can typically submit your application online or, if the lender has physical locations, in person.
At this point, all that’s left to do is wait to find out whether you’re approved.
How long does each step take?
Personal loan applications have a few stages: you typically apply, find out whether you’re approved and then receive funds if you’ve been approved. Let’s explore what each step entails and how long it takes.
Application
Every lender has their own application process, but most need the same details – usually a form of ID, proof of address, proof of income and the application itself. If you have all your documents ready, the application usually takes a few minutes.
Approval
Some lenders let you know whether you’ve been approved the same day you apply (Citi personal loan applicants can receive a response in less than 60 seconds). Others may have longer timelines – sometimes up to 7 business days.
Receiving funds
As with the approval phase, the disbursement process can vary by lender. Some banks may send you the funds the same day you're approved. Others may take several business days. Timelines can differ depending on whether you’ve asked to receive the funds via direct deposit or check.
Citi offers existing accountholders same-day funds once their application is approved. Disbursement may take up to 2 business days for a non-Citi account when using direct deposit..1
