Personal loans are the most popular type of loans because of their versatility, as well as the most despised loans because of their high interest rates.

If you need money to pay for anything, from home renovations to outstanding medical bills, then a personal loan is the best choice for you. But since this type of loan is not secured to an asset, like your car or home, the interest rates are notoriously high.

Deciding whether to take out a personal loan can be tricky, but under the right circumstances it may be the right choice for you. So, assuming you’ve made this assessment and decided you’d like to get a personal loan, how long will it take before you get your money?

According to Shirley Smith, COO Old Mutual Finance, you won’t have to wait very long at all. “If a client has all the required documents the loan will be provisionally approved within an hour,” says Smith. “During this hour, the client’s information is captured. A credit bureau is called and the outcome is assessed prior to making the client an offer,” she explains. The loan will be approved on condition that you have a good credit record. Besides this, you also need to be 18 or older, and permanently employed.

In order to speed up the process, Smith advises clients to have all the required documents available, including:

  • South African identity document
  • Most recent payslip (or other proof of employment)
  • Proof of residential address (not older than 3 months)
  • Bank statement (for the last 3 months)

If you’re applying online, make sure you have online copies of the above documents.

Taking out a personal loan should never be taken lightly, or for the wrong reasons – like independently trying to pay off debt. If you’re under financial stress, opt for professional debt consolidation instead.