Have you ever needed to get a quick personal loan, but didn’t know how to get one? Getting a personal loan is definitely one of the easiest and fastest ways to loan money in case of an emergency. As compared to the other types of loans, personal loans don’t usually require as much paper work and processing. With the other types of loans such as mortgage, student, or auto loans, people have to use their valuables as collateral. In a personal loan, however, there is no need for collateral which is also why it is called an unsecure loan.
Why people resort to personal loans than the other types of loan?
Because personal loans are easier to get, many people resort to getting it more than any other type of loan. It is important to know though that personal loans have higher interest rates as compared to the other types of loans. Although it has a high interest rate, people sometimes use it as a way to pay off their credit card debt, which typically has a higher interest than a personal loan. In the end, people can save more by paying off a personal loan rather than their credit card bill. However, you must remember that a quick personal loan is still a form of debt, so it is better to avoid getting one if you can. Don’t use it to fund a lavish trip or something else that you don’t really need.
What are the requirements needed?
The first thing that you have to do to get a personal loan is to look for an establishment that suits your needs and budget. Personal loans can be made from certain establishments such as banks, money lending services, and pawn shops. Choosing where to loan cash really depends on what kind of agreement you are comfortable with. It is best to personally check the requirements and terms and conditions of a personal loan for every establishment that you have considered. To give you an idea, here is a list of the most common and basic requirements in applying for a personal loan:
- A filled application form
- Photocopies of 2 valid (government issued) IDs
- Latest 6 months Bank Statements or Passbooks (photocopies)
- Proof of billing
- Marriage contract (if applicable)
- Certificate of Employment with compensation details and tenure (Original)
- Income Tax Return
- Payslips or equivalent
- Proof of Other Income Sources
How to ensure personal loan approval?
After submitting your application, wait a few days to learn if your application has been approved or not. To know if you are a good candidate for a personal loan, you could also take note of several things. It is important to have a good credit history. Having such ensures the establishment of your repayment ethics. You must not have any unpaid bills/loans, bounced checks, and other similar types of behavior. Also, get a loan that is realistic to your financial situation. Do not apply for a loan that is way too high for you income. You must also convince the establishment that you are capable of paying back your loan. You could show your proof of income and savings account transactions. Most importantly, all information you supply to the establishment must be true. These days, establishments have ways to find out if what you put in your application is factual, so just be honest.
In case your application is denied, you have the right to ask the establishment to give you the reason for the rejection. In cases where you feel like you shouldn’t have been rejected, it’s okay to double check your credit history or other financial statements. Also, don’t be disheartened from making future loans. Just work on improving your financial behavior, and you could be approved the next time you apply again.