If you need a loan, whether for a car, home, or emergency expense, you may be wondering how long the approval process takes. The time it takes to get a loan approved varies depending on the lender, the type of loan, and your financial situation.
Some loans, such as payday loans or instant online personal loans, can be approved in minutes, while others, like mortgages, can take weeks. In this guide, we’ll break down the loan approval process, factors affecting speed, and ways to speed up your application.

How Long Does Loan Approval Take?
Loan approval times depend on the type of loan and the lender's requirements. Here’s an overview of typical approval times for different types of loans in the UK:
Personal Loans – Same day to 5 working days
Payday Loans – Instant to a few hours
Car Loans (HP, PCP, or Personal Loan) – Same day to a few days
Mortgage Approval – 2 to 8 weeks
Business Loans – 1 to 4 weeks
Let’s take a closer look at each type of loan and what affects approval times.
Personal Loan Approval Times
How Long Do Personal Loans Take to Get Approved?
Most personal loans from banks, credit unions, and online lenders take between a few hours to 5 working days to be approved. Some online lenders offer instant decisions, while high-street banks may take longer, especially if they require additional checks.
Factors That Affect Personal Loan Approval
Your Credit Score – A high score speeds up approval, while a low score may require manual review.
Income & Affordability Checks – Lenders verify your ability to repay before approving the loan.
Loan Amount & Term – Larger loans may require more checks.
Lender’s Processing Time – Some lenders approve loans faster than others.
How to Speed Up Personal Loan Approval
Apply online with a lender offering instant decisions.
Have all required documents ready, such as proof of income and address.
Check your credit report for errors before applying.
Payday Loan Approval Times
How Long Do Payday Loans Take to Approve?
Payday loans are designed for fast approval, often within minutes to a few hours. Some lenders provide instant loan approval with same-day funding, making them one of the quickest loan options.
Factors That Affect Payday Loan Approval
Lender’s Automated Systems – Most payday lenders use automated approval checks.
Bank Verification Delays – If extra verification is needed, approval may take longer.
Time of Application – Applying outside business hours may slow down processing.
How to Speed Up Payday Loan Approval
Apply during business hours for faster processing.
Use a lender that offers instant bank verification.
Ensure your details are correct to avoid delays.
Car Loan (HP, PCP, or Personal Loan) Approval Times
How Long Does It Take to Get a Car Loan Approved?
Approval for car loans, whether Hire Purchase (HP), Personal Contract Purchase (PCP), or a personal loan, typically takes same-day to a few days. Some dealerships offer instant approval, while banks or finance companies may take longer.
Factors That Affect Car Loan Approval
Credit Score & Income Verification – A good credit history speeds up approval.
Dealer vs. Bank Finance – Dealer finance is often faster, while bank loans may take longer.
Loan Amount & Type – PCP and HP agreements may require more paperwork.
How to Speed Up Car Loan Approval
Get pre-approved before visiting a dealership.
Choose a dealer with instant finance options.
Ensure all required documents are ready (e.g., proof of income, driving licence).
Mortgage Approval Times
How Long Does a Mortgage Take to Get Approved?
Mortgages have the longest approval times, typically taking 2 to 8 weeks. The process includes credit checks, affordability assessments, and property valuations.
Factors That Affect Mortgage Approval Time
Lender’s Processing Time – Some banks process applications faster than others.
Credit & Affordability Checks – Poor credit or complex income situations can slow approval.
Property Valuation & Legal Checks – Lenders assess the property before final approval.
How to Speed Up Mortgage Approval
Get a Mortgage in Principle before making an offer.
Ensure all required documents (payslips, tax returns, bank statements) are ready.
Work with a mortgage broker to find a lender with fast approval.
Business Loan Approval Times
How Long Does It Take to Get a Business Loan Approved?
Business loans can take between 1 to 4 weeks, depending on the lender and the complexity of your business finances.
Factors That Affect Business Loan Approval
Financial Records – Lenders require accounts, tax returns, and business plans.
Business Credit Score – A strong credit profile speeds up approval.
Loan Purpose & Amount – Higher amounts or complex applications take longer.
How to Speed Up Business Loan Approval
Prepare financial statements in advance.
Choose lenders offering fast-track business loans.
Provide clear documentation on how the loan will be used.
FAQs
1. What is the fastest type of loan to get approved?
Payday loans and online personal loans often have the quickest approval times, sometimes within minutes.
2. Can I speed up loan approval?
Yes, by ensuring your application is complete, providing all necessary documents, and applying with lenders offering instant decisions.
3. What can delay loan approval?
Delays can be caused by missing documents, low credit scores, affordability concerns, or lender verification processes.
4. Can I get a loan approved on the same day?
Yes, some lenders offer same-day approval and funding, particularly for personal loans and payday loans.
5. Does applying for multiple loans at once affect approval time?
Yes, multiple applications can hurt your credit score and make lenders hesitant to approve your loan.
Final Thoughts
The time it takes to get a loan approved depends on the type of loan, the lender’s processes, and your financial circumstances. Payday loans and online personal loans offer the fastest approval times, while mortgages and business loans take longer due to extensive checks.
To speed up approval, ensure you meet the lender’s criteria, have all necessary documents ready, and consider lenders offering instant online decisions.
If you're unsure which loan suits your needs, check your credit score and compare lenders before applying.
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