Many banks and other lending houses are not keen on giving out loans and that makes it somewhat difficult for many people to get loans when they need it. No matter how difficult it may be to get a loan, you can still find a lending house or a bank that will be willing to make the loan available to you when you need it. A personal loan is highly flexible in that you can pay back over some time on instalment. What is more, you will mostly not be required to provide collateral before you can access a personal loan since many of them are unsecured. In this write-up, we will show you how you can easily get a loan to finance those very important projects and foot those emergency bills. Continue reading to learn more.
How to get a personal loan
Check below for steps on how you can get a personal loan to meet those emergency financial needs.
- What are your requirements: You should start by determining why you need the loan in the first instance. You should also make up your mind about how much you will need. Do you need a personal loan to fund your wedding or you need funds to renovate your home? You should have a clear mind about these questions before you go for a loan.
- How eligible are you: You should also determine your eligibility before you go for a loan. There are so many eligibility calculators that you can use online and most of them are free to use. The calculators can help determine if you are eligible for that loan based on certain parameters. Aside from determining your eligibility, the calculator can also help determine how much you can access as a loan. Bear in mind that your credit rating is one of the principal determinants when looking for a personal loan. The amount you can get as a loan will be much if you have a good credit score.
- Calculate the instalment payment: You must first know how much you will have to pay back monthly before you take the loan. Do you have what it takes to pay that particular monthly instalment? If not, you can reduce the amount you want to take as a loan so that you can meet the monthly instalment stress-free. You should also determine the repayment period allowed by the lender before you go for the loan. Is it 6 months or one year?
- Consider the interest rate: One other important consideration is the interest rate. The interest rate varies from one lending house to another. The type of loan you want to take can also determine how much you will have to pay as the interest rate. You should be clear about this before you take that particular type of loan from that lending house.
- Documentation is important: The documents you will need to submit before you can access the loan depends a great deal on the type of loan you want to take. Some loans only require online registration and no physical documentation. If you are going for a secured loan, you will have to present documents of the collateral that you want to use to secure the loan. If you are going for a payday loan, on the other hand, you will be required to provide the proof of your income, your ID and even your address proof
Borrow from your employer
You do not have to rely on banks or lending houses for loans to meet your emergency financial needs; you can equally take the loan from your employer. The loan can be interest-free at most times. Even if it attracts interest, the interest rate is rarely more than 8% and it may not be up to that. Such a loan can equally be customized to meet your specific needs. What is more, you can get the loan money deposited to your bank account within a few days.
However, you must bear in mind that such a loan will be taxable just as your salary. The loan may also not be taxable if you are using it for certain medical treatments.
Cash withdrawal on credit card
You can equally use your credit card to get a loan. Such a loan is a short term loan and also unsecured. The interest rate on this type of loan depends on the lending house that issued the credit card and it usually ranges from 2% to 3.5% per month. The amount you can get also depends on your card limit. This type of loan will provide instant access to the required amount of money and you can also get the loan anywhere and anytime. The interest rate will also be on the money from the day you take the loan until the loan is fully paid.
This type of loan usually carries interest rates between 9% and 13%. If you have a home loan already, you can use this type of loan to top it up until the tenure of the current loan has expired. This type of loan is only applicable some years after your original home loan has been paid. Also, bear in mind that the top-up can never exceed 75% of the value of your house. The top-up loan never takes too long to process; the cash can be cooling its feet in your bank account just three days after you have applied for the loan. Be that as it may, you may have to pay heavily if you ever default in payment.
The interest rate on this type of loan varies from 13% to 24%. It is also considered as one of the quickest ways to get a loan to meet your financial needs. The loan processing is so fast and you can get the money just after 30 minutes of applying for the loan. Some personal loan processing can also take as much as 3 days; it all depends on how reliable the lending house or bank adjudge you. The process can be a lot easier and faster if you already have a preapproved loan from your bank.