Key learning points
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In rare cases, emergency loans can be deposited into your account the same day you apply.
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Most emergency loan lenders will send you the money within a few business days of approval.
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Checking your credit, comparing lenders and gathering the necessary documentation in advance are key to a quick process.
Emergency loans can be a lifesaver when you are faced with sudden expenses and need some money quickly. Although most loans are funded within days of approval, some lenders may offer same-day financing. That said, you should submit enough information to make it easier for the lender to approve you and speed up the entire process.
How long does it take to get an emergency loan?
You can get an unsecured personal loan from banks, credit unions and online lenders. Regardless of the institution you choose, most lenders will send the money to you a few days after approval.
That said, there are some lenders that offer same-day financing. To qualify, you must apply before closing on a business day and submit any required documentation the lender may require. Even then, it may take a day or two before you can access your emergency loan, depending on how long it takes your bank to process the deposit.
No matter how long it takes for your lender and bank to complete the transaction, completing the application will likely take no more than 10 minutes. In some cases, you can complete it in less time if you have all the necessary information at hand.
The table below shows the average funding timeline of some of the top emergency loan lenders.
| Lender | The time it takes to finance the loan |
|---|---|
| Avant | 1 day |
| Best egg | 1 day |
| To discover | 1 day |
| Lending point | 1 day |
| OneMain Financial | Same day as approval |
| Upgrade | 1 day |
| Upstart | 1 day |
How to Speed Up the Emergency Loan Process
Almost every lender requires the same information and documentation to process an emergency loan application. To speed up the process, compare lenders and gather all the information you need before you start.
1. Know your credit score
Each lender has its own minimum credit score requirement to approve you for the loan. Likewise, your credit score will be a key factor in determining your interest rate.
To find the right lender for your situation, you’ll need to check your credit score. This allows you to narrow your search to lenders that offer loans to consumers within the same credit limit, saving you time and the frustration of rejection.
2. Compare lenders
Not every lender offers a quick solution for emergencies. While many should be able to get you financed within two to three working days, make sure the one you’re looking for actually offers this by comparing lenders. If not, you may have to wait more than a week for the money.
In addition to financing timelines, review each lender’s annual interest rates (APRs), repayment terms and fees to ensure you get a loan you can afford.
3. Gather the necessary documents
Lenders require copies of the following to verify that the information you provide is accurate.
- Proof of income such as pay stubs or tax returns.
- Copy of your driver’s license or other government-issued ID.
- Citizen service number and contact details.
Having all of this prepared in advance will streamline the application process. It can also come in handy if you submit multiple applications to prequalify and check rates, which you should always do. Even in emergencies, finding the most competitive rate is critical to staying on budget.
4. Double-check your application
Once you have selected your lender and completed the application, make sure all information is correct before submitting. This allows the lender to get the most accurate picture of your finances and credit and make you an offer.
Verifying the information provided is also a crucial step in getting the money you need in a timely manner as it speeds up the lender’s verification process, resulting in a quick decision.
What to do if the money does not arrive on time
There are alternatives to emergency loans that can be faster (and cheaper) than the emergency loans themselves. Compare the pros and cons of each before taking out an emergency loan.
- Ask your loved ones for help. Friends and family may be willing to pay the money for you if you can demonstrate that you can pay them back quickly.
- Utility companies and local governments may offer hardship programs that you can apply for to reduce or defer bills or rent while you are struggling financially.
- Custom payment plans or grace periods offered by lenders or billing companies can also provide some flexibility for your budget.
- Paycheck advances – directly from your employer or through an app – can cover small amounts before you get an emergency loan.
If you’re feeling pressure, take a step back
Unfortunately, emergency loans – especially for borrowers with bad credit – are susceptible to predatory lenders. Products like personal loans and car loans are often marketed as emergency loans to entice vulnerable borrowers.
If you are faced with an emergency where you need money quickly, you need to be careful. Any salesperson who pressures you to agree to a loan without reading the documentation is a bad sign. Even in an emergency, you should take the time to review every detail about the costs and repayments associated with a loan.
You should also be aware of scams. No legitimate lender will ask you to send a payment to “verify” your bank account or pay a fee with a gift card. These are scams, and if you notice them, turn the other way. Instead, consider your alternative options.
it comes down to
Lenders typically fund emergency loans within a few days of approval – and some even offer same-day financing. That said, the key to a quick transaction is knowing your options and having all the necessary information on hand before you apply.
