Duration of processing loan applications

Loans

Duration of processing loan applications

It only takes a few minutes to complete the application for a loan. But how long does it take to process through the bank? 

The duration of processing credit applications varies greatly. While private customers usually receive a quick response, companies often wait unnecessarily long for a loan commitment, as a recent investigation shows. The type of financing is also crucial.

Consumption of consumer loans much faster than corporate loans

A total of 36 German credit institutions have asked the auditing firm how long they need to process a loan application. While loan approval for consumer credit is now often possible within a few hours, companies sometimes wait weeks for the bank’s response – the longer the higher the turnover of the business.

Trend towards so-called “instant loans”

Creditworthy individuals with short-term financing needs benefit from the development at ever shorter processing times. Only six percent of banks surveyed still need more than five hours to process a loan application privately, with three quarters of institutions claiming to do so in less than 15 minutes. For pure processing time but still lying and transport times. Therefore, a so-called instant loan is not necessarily available immediately. Our bank is already a step ahead with its online signature credit . The loan amount is available immediately.

Longer waiting times for mortgage lending

SMEs with a turnover of less than 2.5 million euros, on the other hand, are waiting much longer for a loan. Here is an overview of how long it takes to process a loan application:

  • Two days or less: Only 17 percent of all banks manage this.
  • Two to five days: 44 percent of the banks take up to one working week.
  • More than five days: 39 percent of all banks are comfortable in processing.

Private customers, however, also have to expect longer waiting periods when they apply for mortgage lending. Compared to the predecessor study, the processing time in this area has even extended and in many cases is still several days. The background to this is that banks have to comply with much stricter requirements when examining the new home loan book directive.

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