In the days before the Internet, applying for a loan was a long, involved and not to mention an expensive process. It was difficult to compare loan rates, hard to find information about your proposed lender and the application process could run to many pages, with one mistake meaning you had to restart the whole thing!
Nowadays, you can easily compare rates from hundreds of organisations, use a personal loan calculator to see how much the monthly payments are going to be and if you are in need of quick finance, get a decision within minutes! You can even apply 24/7 as websites are never closed.
Why you may need a personal loan?
There are various reasons to apply for a personal loan. Some of them are listed below
- To cover wedding expenses
- To pay a large medical bill
- To cover a costly repair work for your home
- To start a business, which is otherwise not covered in business loans.
- To pay off your costly credit card debt
How can I apply for a loan?
In general there are 3 options for how you can apply for a loan. You can apply in a person, via online banking (this may be very useful as much of the information might be pre-populated) or through the lenders website. I listed personal loan options some time back, you can visit the post and apply for a loan.
I get feedback from my readers on the ease of the loan process for personal loans. US consumers can get approved up to $35,000 instantly online, even with bad credit.
Majority of people currently apply online for loans, due to the ease of use and speed of the application. Applying online normally takes no longer than 30 minutes and often you can get a provisional approval right then and a final approval within a few business days.
What to consider when applying for a loan
Once you have decided on how much your loan is going to be for, there are a couple of other factors to keep in mind when comparing different online loans and then applying. These factors could include:
- Interest rate: Whether you are going to choose a fixed or variable interest rate and what the rate is going to be for either of those options
- Comparison rate: This is going to be the lifetime cost of the loan, including various fees and charges
- Loan length: The duration that you will have to repay the loan. As a general rule, the shorter the loan, the higher the repayments
- Repayment intervals: How often you are going to schedule your repayments (weekly, fortnightly or monthly)
- Redraw facility: This gives you the option to pay more than your regular repayments, should you come into some extra funds. This will help you repay your loan more quickly and pay less interest in total
What information do you need to provide when applying?
During the application process, make sure you have the following information with you, as it is likely you will need it to complete the application:
- Your decisions on the different loan variables listed above
- Contact details (including work phone number and email address)
- Driver’s license/passport or even your birth certificate (you may also need copies of these)
- Your salary and proof of this in the form of a pay slip
- Details of your current monthly expenses
- Information about other items you may own, like cars, property or other assets
- Details of other debts you may have e.g. Credit cards, other loans etc.
When completing an online application for a loan, even if it’s just a small loan for some quick cash, it is always very useful to come prepared with the necessary decisions made about the various loan details and all the documentation. Be sure to read each question carefully and answer truthfully.
If you have any issues or questions about the online loan application, pick up the phone and ask the lending organisation as any mistakes may result in an unnecessary rejection!