Due to the very dynamic technological development in the last few decades, activities and processes that used to take a lot of time can now often be performed much faster. These changes also affected the financial sector, and even more precisely, the banking sector. The waiting time for a loan decision has certainly decreased compared to what it used to be, but we can still ask ourselves: how much is waiting for a loan decision? What does it depend on, after what time will it be released?

How long is the waiting period for a loan decision at the bank?

It is difficult to indicate the waiting time for a credit decision because it depends on many factors such as:

  • type of loan
  • bank requirements
  • making applications.

We will receive a credit decision the fastest in the case of cash loans, especially those for a small amount. Currently, the decision on them is often a matter of automated algorithms, which makes it possible to relieve bank analysts and also make it possible to take loans at non-standard times (at weekends, at night). We will probably meet the least amount of formalities when taking a loan for regular customers of a given bank, because the lender will already have several data about us, such as our account history.

The matter is more complicated with loans such as a mortgage or a consolidation loan because they require more formalities. The longer waiting time may also result from the need to spend additional time securing the loan with a surety, insurance, or general lien.

The bank’s requirements and rules are also important. For example, nowadays, it is less and less common to meet the requirement to provide a certificate of income from the employer, the obtaining of which may take up to several days, but it still happens, especially in the case of loans for high amounts.

Mortgage decision- How long does it take to get?

A mortgage is a very serious obligation for the borrower, as well as a very large investment for the bank. So it is not possible to decide his case as quickly as with a cash loan. The catalog of documents to be provided is much broader and applies to both ourselves and the real estate we are interested in. 

Our creditworthiness, credit history, the truthfulness of the information contained in the application, legal status, and value of the property – all of this must be thoroughly analyzed. Many different analysts are involved in the whole process, and things cannot be significantly accelerated with an algorithm, as with loans for small amounts. Accordingly, the expectation of a credit decision on a mortgage loan can belong.

Many banks take two stages in this respect: after the first one, which takes about two weeks, a preliminary decision is issued, and after some time, at least another few weeks, when the analysis is completed and all formalities are completed, we will receive a final decision. 

The good news is that the initial decision is usually the same as the final decision, and the bad news is that because mortgage loans are so popular, banks tend to be overwhelmed with applications. This means that sometimes the entire procedure can be significantly delayed and take up to several months.

When you will get a loan?

The bank is not the only place we can go if we need extra funds. The use of the services of loan companies that offer both installment loans resembling traditional loans and so-called payday loans is also very popular. Payday loans are loans for relatively small amounts that must be returned in one payment after a short period (several weeks or months).

In non-bank institutions, we will receive smaller amounts, and the conditions may be (but not always) less favorable than at a bank, but it cannot be denied that the formalities have been minimized in most cases. A loan can often be taken completely online, in a matter of minutes, without providing income statements or other documents. The decision whether to grant a loan is made in many cases not by an employee of the company, but by a special algorithm, which means that we can get it after a few minutes.

The waiting period for a credit decision – summary

Receiving a cash loan has never been easier and faster than today. In many cases, it can be done completely online, without having to go to a bank branch in person or obtain a series of documents. Unfortunately, it is not possible for all loans – while a cash loan can be obtained sometimes even in several minutes, in the case of a mortgage, we will certainly wait much longer. 

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