^^ This. If the loan is cleared to his account, there's no real reason to not just give you cash. If it would put you more at ease to have actual cash in hand, he should have no problems with doing just that if he's legit.
EDIT: Unless you're like me and blow through cash in a few minutes. If I have any amount of cash in my pocket for more than 10 minutes, it must be a late Sunday night...I have absolutely no willpower when it comes to not spending cash-cash. So then cash would be a bad idea.