Borrowing money for a specific cause is something which we all need to do at some point in our lives, whether it be through family or friends or even taking out a personal loan.
What is a personal loan?
A personal loan is a loan which you can borrow almost immediately after applying online. Usually, lenders offer unsecured loans up to £25,000 but, some lenders such as Simple Personal Loans want to stand out from the crowd and offer up to £35,000. With these loans being large amounts, lenders and brokers will offer you up to 6 years to repay it. To make it easier for you, you are required to repay in smaller monthly instalments. This will be a lot easier than paying it all of in one go, no matter how big or small it is.
Am I eligible?
Each eligibility criteria can slightly vary, whether this is in age or area. So, there isn’t one which fits hand in hand to all lenders. But, as following is a criterion which has a range of requirements that lenders and brokers tend to need to give you a loan:
- Be aged 18 or over
- Be employed or have a stable source of income
- Live in the UK or be a UK resident
- Have an active bank account
- Have a valid debit card for this account
- Hold a valid email address and phone number
How do I get a personal loan?
Applying for a personal loan is easy, as long as you fit the criteria, your chances of being accepted are high. Each lender has a different application process, but we advise you to find a lender who has an online application process as this will speed the whole process. The application forms all follow similar structures, in the sense that each lender and broker asks for similar information. Once you have completed and submitted your application, you should be informed if you have been accepted or not soon after.
What can I use a personal loan for?
Personal loans can be used for whatever you want, hence the name. But, that doesn’t mean you should use them for everything and anything. The most common uses tend to be for things which people usually can’t afford to pay for in one go. This could be things like (isn’t limited too) a wedding, a car, house DIY or even debt consolidation. We advise you don’t use a loan to pay for things you shouldn’t. For example, gambling or addiction as it could impact your chances of repayment. This could lead you into serious financial difficulties which you can read more about at the Money Advice Service.
Maybe a loan isn’t the right option for you, so learn about alternatives you can take here.