Understanding Loan Application Status and Funding Time for Personal Loans

November 21, 2023 Personal Loans
Understanding Loan Application Status and Funding Time for Personal Loans

The loan application process can be confusing. It is advantageous to remain informed about your application status, funding timeline, and other key details about your personal loan.

In this guide, we will go over what you should know to effectively navigate the loan application process so you can raise your chances of securing a loan and expedite the funding timeline.

Loan application status - checking for updates

Your loan application status shows if there are any loan decisions that the lender has made for your application so far.

After you apply for a personal loan, you should check for updates to your loan application status. This can typically be done by visiting the official website of your prospective lender, where you can find an online portal. You can also check your status by contacting the lender for updates.

Loan application statuses commonly include:

  • In progress
  • Under review
  • Approved
  • Conditionally approved
  • Denied

Some lenders also allow you to check your loan application status in person. You would be able to check the status by visiting a branch nearby. This is especially the case if you are borrowing money from a bank or credit union.

Monitoring your loan application status ensures that you remain informed of any new loan decisions and if there is an inquiry from your lender that needs your response. If you do not reply to your lender quickly, it can result in delays in the borrowing process.


Interpreting loan application status updates

While statuses can vary from lender to lender, here are the most common types of statuses you might encounter after applying for a personal loan.

Pending review

This shows that your application has been successfully submitted, but the lender has not begun assessing your application yet.

Under review

The status saying “Under Review” means that the lender is actively reviewing your application. This process involves assessing your creditworthiness, financial stability, and the validity of the information that you provided.


If your status shows “Approved” it means that your lender has agreed to lend you money based on specified terms and conditions. You will still need to sign the loan agreement to formally obtain the loan and accept the repayment terms and requirements.

Conditionally approved

Sometimes, lenders will give you a conditional approval. This either means that you need to judge their counteroffer or take action to satisfy the new conditions outlined by the lender.


A rejected loan application status means that for whatever reason, you did not meet the lender’s eligibility criteria for receiving a personal loan.

If your loan application has been denied, you may be able to read a decline letter provided by the lender for more information and insight.


If you change your mind and withdraw your loan application after submitting it, the loan application status may appear as “Withdrawn”.


Some lenders may require you to accept the loan offer within a designated time requirement. If you fail to respond in a timely manner, the status might mark your application as “Expired”. Because of this, it’s important to monitor your loan application status so you do not miss out on a favorable loan offer.

Funding in progress

Even after you have signed the loan agreement, you may still be able to check your application status to see whether the loan funds have been disbursed yet. If your loan disbursement has not been processed yet, it may result in this loan status.

If it is taking an unexpectedly long time (e.g. over five business days) for the lender to disburse money into your account, you may want to reach out to your lender to confirm that everything is still running smoothly on their side. Delays due to disbursement issues are fairly rare, but being proactive in dealing with them can help you more quickly resolve the problem and receive your funding.


Managing expectations during the funding timeline

Funding timelines can differ greatly depending on your chosen lender. While some lenders are able and willing to disburse loan funds to borrowers on the same day as the loan being approved, others may take around a business week.

Funding delays

Sometimes, your loan disbursement can be delayed. There are various potential reasons. Here are some common reasons your funding is taking longer than expected.

  • Loan funds need to be withdrawn from banks that are in remote locations
  • Issues with disbursing funds to your bank account
  • Inaccurate information has been provided

Because of the inconveniences resulting from funding delays, it is critical that you provide accurate details and all of the necessary information requested by the lender. That way, you raise the likelihood of a smooth and painless funding process.


Tips to expedite loan funding time

Here are some tips you can follow that may help you expedite loan funding time.

1. Make sure you provide accurate information

Lenders will ask you for information about yourself on your loan application. Before you officially submit the loan application, double check that your provided information.

After you have applied for a loan, lenders may ask you to produce additional details or documents. Carefully review your documents to make sure that nothing is missing before you supply the requested information.

Providing lenders with an accurate loan application can help you expedite the loan funding timeline. On the other hand, an application with inaccuracies or insufficient details can complicate the funding process, resulting in slower turnaround and funding times.

By providing accurate and complete information to your lender, you can streamline and simplify the funding process, resulting in an ultimately faster funding time.

Here are examples of what a lender might request from you:

  • Proof of income (e.g. W-2s or pay stubs)
  • Tax returns
  • Bank statements
  • Photo ID
  • Employment history
  • Housing status

2. Consider pre-approval for personal loans

A loan pre-approval is easy with a quick turnaround time compared to an official loan application. By seeing if you pre-qualify for a loan from a lender, lenders will do a soft inquiry to assess your chances of being approved. Not only does loan pre-qualification hasten the loan shopping process, but it also has no negative impact on your credit score.

If you don’t pre-qualify, you won’t need to waste any more time with this particular lender. If you do pre-qualify, the lender may tentatively agree to give you a loan. You will still need to submit a complete loan application that the lender properly assesses.

3. Go electronic

Electronic loan applications can accelerate the loan review and decision process. You can usually opt for electronic documents by changing your settings in the lender’s online portal so that any important information will be delivered to you electronically. This not only saves time, but can also save paper.

4. Apply during business hours

To maximize efficiency, you may want to send in your loan application during the lender’s business hours. This could help reduce the delay between your application and the approval decision.

5. Choose direct deposit funding

While lenders may offer you the loan funds in other mediums, it is typically a good idea to choose loan disbursement through a direct deposit into your bank account. This is the fastest way to receive loan funds.

6. Opt for expedited funding

Some lenders are happy to offer special expedited funding options for borrowers who urgently need loan funds. If you need money on the same day or before the week ends, it might be worth it to pay the extra fee to receive quicker funds.


Loan application status and funding time comparison

After your loan application has been approved, it will take some time before you can receive the loan funds. The sooner your loan application is accepted, the sooner the disbursement of funds process can begin.

Typically, after your status shows that you have been “Approved”, you will receive the funds in your bank account within five business days.

Naturally, if your loan application status shows that you have been denied a loan, you should not expect to receive any funding. Lenders should have sent you a decline letter that explains why your loan application was denied.

What are the challenges of the loan funding process

Here are some common challenges that borrowers encounter during the funding process.

  • Incomplete or inaccurate documentation can result in processing delays
  • Income verification may take longer for borrowers who are self-employed or freelancing
  • Lenders receiving high volumes of loan applications can result in less efficient processing times
  • Significant changes to your circumstances before funds have been disbursed
  • Failure to communicate with the lender can result in delays

If you are concerned about the turnaround time for receiving your funds, try to choose a lender who is reputable and known for quick processing times. Otherwise, make sure that you proactively communicate changes and needs with the lender to minimize delays and miscommunication. Ask questions to clarify any terms or requests from the lender that bring you uncertainty.


Ensuring a smooth loan application and funding experience

Remember, staying proactive throughout the loan application process helps ensure a smooth and seamless experience. Here are some tips that can help facilitate proactive and effective loan application management.

Periodically check your loan application status

It’s a good idea to regularly check your loan application status after you send the application in. Visit your portal once daily so that you can act swiftly in case of an update to your loan application.

If your lender gave you access to an online portal, you might want to bookmark the website on your computer. That way you can conveniently check your loan application status online.

Improve your credit score

Boosting your credit score can raise your chances of receiving a personal loan because having a good credit score is one of the clearest indicators of creditworthiness.

The following five factors majorly determine your credit score:

  • Payment history
  • Credit history length
  • Credit mix
  • New credit accounts
  • Amounts owed

Simple strategies to help you raise your credit score include keeping old credit accounts open, paying down credit card balances, and making debt payments on time.

Research your prospective lenders

As you shop for a loan, research and compare different lenders to see what loan requirements and terms they typically have. Learn about the interest rates offered by your prospective lenders and see how the loan terms change based on borrower creditworthiness.

In addition, verify with reputable online review sites to see that your chosen lenders are legitimate. Some shady lenders will use predatory practices to take financial advantage of borrowers, especially those who are in dire need of funds.

Manage your expectations

Seeking personal loan funds can be a stressful process, especially since many borrowers may be facing financial challenges and needs at the same time. Try to manage your expectations and be aware of your own chances of receiving a loan. The better your credit score and financial stability, the more likely you will be approved.

If you are accepted for a loan, remember that it can take anything from a few hours to around a week before loan funds are disbursed to you. Consider the expedited funding option if you are certain you require the funds as soon as possible.


Key takeaways

It’s essential to keep track of your loan application status using the lender’s official online portal so that you can adapt quickly to any updates. The funding timeline for your loan typically varies from minutes to ten business days based on your lender’s terms and your location.

Try to regularly check your loan application status, including after you have signed the loan agreement. If your lender requests additional information, double check your documents to ensure the details are correct and complete. Make sure you ask questions if you need the loan terms or conditions clarified before you sign the loan agreement.

By staying proactive throughout your loan application and funding process, you can enjoy a smoother experience.

About The Author

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Ru Chen

Content Writer

Ru Chen is a content writer with several years of experience in creating engaging and well-researched articles. She mostly writes about business, digital marketing, and law. In her free time, she can be found watching horror movies and playing board games with her partner in Brooklyn.

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