Getting a loan from a bank is not the easiest process. There are five steps on how to get a personal loan from a bank. Lenders are now looking for a lot more in a loan application and are stricter. There are several key areas loan providers will focus on, so it’s important that are ready to present everything required to get your application going as soon as possible.
Before you go to the bank, take a look at loan packages online and see what other competitors are offering, click here to see an already made comparison. To make a proper comparison online, you need to know what type of loan you’re looking for, the terms you can more or less afford, and your goal for paying off the loan as soon as possible. If you’re looking for one particular type of loans like home loans, payday loans (short-term loans), student loans or consolidation loans (debt rescue), make sure you find the best deal for you. With all of these loans, we have the loan providers in South Africa, rated by other South African users.
As soon as you find the loan package that speaks to your needs, contact the bank or loan provider to find out up front what the requirements are for the loan. With a bank, you may need to phone them to find out what documents are required as banks have different requirements, and it will be important to know what they are upfront. Or you can apply online and have a loan provider contact you, see whether you’re approved for a loan and then tell you what documents are required to complete the application.
When you’re looking for a loan, it’s always a good idea to know your credit score. The bank should tell you the range of credit scores required for a loan approval. Should you apply online, the loan provider can tell you right away. Loan providers will rely heavily on your past usage of credit. If you have a low credit score, it can hurt your chances of getting a loan approved.
Once you have a checklist, you’ll know how to get a personal loan from a bank as they will explain what appropriate documentation that you’ll need for a loan. Fortunately, when you apply online for a personal loan, you don’t need a checklist as most loan providers will tell you over the phone what is required.
As you can imagine, applying for a loan when you are in a hurry is never a good idea. Loan providers have a particular protocol for approving a loan and getting you the money. When applying online, you can be pre-approved upfront and the specifics will only be shared with you once phoned. The goal should be to secure a loan that you can afford to repay. You might also have to outline the reasoning behind the loan. Should you need a personal loan, the loan provider might want to know how you plan to use the cash, for example, you may need it for home improvements or debt reduction. It can get frustrating when you’ve applied for a loan, and it’s not approved. Fortunately, most loan providers provide specific reasoning behind the denial.
Also, be careful not to apply for personal loans to different loan providers over and over again as that too can damage your credit score and that in turn can harm your chances in the future of getting a loan approved.