Money

5 Easy Steps To Make A Successful Personal Loan Application

personal loan application

It’s not every day you get advice on personal loans, and when you do, you can see a herd on the ‘against’ side of the spectrum.

You rarely ask for it, and even on those rare occasions, instead of having an educated, logical discussion about it, you get to witness all parties present taking their turn at the dice to discuss the risks you are making yourself vulnerable to and why would you ever need to get into the messy world of loans.

Personal loans should not be the primary way of obtaining money when you are in need, but if you are without any financial cushion and have analysed your options and have pinned it down to availing a fast personal loan. This article is going to guide on the ‘How To part.’

Pin Down a Lender

The first part of availing a Personal Loan is also the one that requires your maximum attention. The market is filled with advertisements promising to take you out of your financial trouble in just 5 minutes. The possibility of you colliding with somebody who is lending money at the spot is not non-existent.

Here, you have to pause and settle with a lender that is reputable, trustworthy, understands your needs, offers good interest rates, preferably offers a flexible repayment plan.

It’s advisable to go with a lender who takes you out of your existing troubles and not land you in more.

Meet the Eligibility Criteria 

Just knowing sources from which you can avail loans is not enough. You have done extensive research on both online and offline options, went through the ordeal of visiting offices of lending companies, and grilled the counsellor there in giving you all details on how to repay the debt and the documents you have to attach or places you have to sign.

Among the online options, you have weighed down, which are the most popular websites that can disburse money to your account in the shortest period and which one among these popular websites you are going to go for.

Your extensive preparation would come to a standstill when you finally get to know that you don’t have the Credit Score! Or the basic salary requirement. And in a few weird cases, you may not fall in the age criteria. There’s also a possibility that you placed your hopes of getting a Fast Personal Loan on your account, which just started being credited with the money. You would be required to submit Bank Statements of the last 3 months when applying for a loan. Additionally, if you are earning through internships or freelancing, thus, can’t prove that you get regular constant chunks of money as salary; your application would be rejected.

Thus, make sure you meet the bar for being eligible for receiving a Personal Loan.

Check the Conditions

Once you have figured out the lender and you choose to stick to the source for your fast Personal Loan application, it is paramount to go through the numbers. Numbers other than Loan Amount extended to you. It’s not uncommon for someone to ignore this important step because knowing that you have a lender when you urgently need the money can send anybody on a high horse. The rush to wrap things fast doesn’t do you any good. It’s advisable to use a fine-toothed comb when going through numbers such as the interest that you would be paying, whether the repayment tenor is flexible, whether it requires any collateral, in what circumstances this collateral would be seized, frequency of engagement between you and the lending party after the loan and of course hidden charges.

Only when you understand the terms and conditions, you may proceed with it.

Apply for it

 Once the first two steps are taken care of, you can finally apply for it. In the case of an online loan, the process would be flawless. You are required-

 – To scan and submit basic KYC documents like Driver’s Licence, or other valid ID proofs and some passport size photographs.

 – Meet the eligibility criteria, which is having a salaried account, and having a decent credit score before filling the personal loan application. The amount you are required to be earning varies among various lending parties.

 The same is true for credit score. Different lending parties can have different numbers as their eligibility bar, but there’s not much difference between the highest and lowest credit score. The score demanded by all lending sources keeps moving around the same figure.

 – The lender usually demands bank account statements for the last three months too.

Wait for Approval

Now all you need is to wait for the approval. This is the step where you give the website employees (if you took a loan online) some privacy with your documents and application. Just like you went through their terms and conditions before applying for a Fast Personal Loan, they will go through your application before giving you one!

It’s not a difficult step. In case your documents are complete, credit scores good, and you meet the eligibility criteria, your application would appear flawless. The money hops into your account pretty fast, too, in just 24 hours. Know more about fast approval loan in Singapore here.