Personal Loan Application
Although the personal loan application process is different for each type of loan that you will apply for. There are certain things that each application will have in common. Nearly all loan applications will involve carrying out a credit check. The lender will also need you to be able to prove your income. They will also need you to be able to prove your identity. The specific information that you will need to provide for different types of loans is explained in more detail below.
Payday Personal Loan Application
A payday loan will not just need to know what your income from your job is. The lender will also need to know details about your contract. Payday Personal Loan is based on your ability to repay the loan in full on your next payday. Maybe they will need to know that you will receive your next months pay. They may ask questions such as how long you have been employed by your current company. Whether you are on a permanent or short term contract. There is no need for them to contact your employer to find out this information. However they may ask for proof that you have received a regular wage from your current company in the past. Read More >>
An application for a mortgage is one of the most detailed loan applications that you will make. A mortgage lender will need to know that you are able to afford the repayments for the entire length of the loan. Therefore they will look at all scenarios such as what would happen if you were to lose your job. Or if your mortgage payments were to rise in the future. They may ask to see your bank statements. You may be asked questions about any regular payments that appear on these statements.
Secured Personal Loan Application
In order to apply for a secured loan, you will need an asset to put down as security. Therefore the lender will need to know what this asset is and how much it is worth. In most cases, the asset will be the home that you live in. Hence the lender will need to know how much your home is worth and what the outstanding balance is. The lender may send someone to carry out a valuation of your home. They may ask you to get your own valuation and send it to them.
Unsecured Loans Application
You do not need to put up any assets as collateral for an unsecured loan. The decision will be made solely on your ability to repay. This may mean that the lender will take a detailed look at your incomings and outgoings. As well as the information that you supply on your Personal loan application form. The lender may ask additional questions. If you have paperwork such as bank statements, utility bills, and wage slips. It can be useful to provide the lender with copies of these if they ask for additional information.
Debt Consolidation Loans Application
If you are applying for a debt consolidation loan. You will need to provide details about your outstanding debts. The lender may ask you to provide balances on all your outstanding loans and credit cards. So they can see how much you would need to borrow. They will also want to know how much your monthly payments come to. Then they can be sure that this will be reduced when you take out the debt consolidation loan. In some cases, the company that you owe money to will be paid directly. The lender may ask for account information.
Car Loan Application
In order to grant a car loan. A lender will need some information about the vehicle that you are planning to buy. The most important information that they will need to know is the value of the car. There are also other things that they may ask. A lender will not want you to still be paying back the loan when you no longer have the car. They may ask some questions about the condition of the vehicle you want to buy. In some cases, all of this information will be collected by the car dealer. Who will make the application to their finance company on your behalf.