Sometimes you may need economic support to realize your dreams or meet your needs. In such cases, you should contact the lending banks. You must determine the type of loan you want to withdraw. So why are you taking a loan? There are several types of loans. These are personal, car, mortgage and home improvement loans. There are commercial loans for businesses. In this article, we will give information about personal loans, not commercial loans.
How to get a personal loan?
You take credit for your needs. That’s why you should first determine the amount of money you need. Getting more or less credit than you need can be economically challenging. Determine your loan amount, taking into account your economic situation. You should correctly evaluate both your income and the amount you can pay.
- Determine the loan amount : The first thing you need to do to withdraw a loan is to determine the correct loan amount. You should determine the loan amount according to your income and economic conditions. This amount should make sense. Your loan request that is not suitable for your economic conditions will be rejected.
- Payment term : A loan is to pay a high amount of debt in installments. You must install the loan you will withdraw according to suitable conditions. Determine how many installments you will pay your debt.
- High credit score : Your credit score must be high for your loan request to be positive. The biggest factor affecting your credit score is that you have paid your debts to financial institutions regularly. People who pay your debts regularly will have a high credit score.
- Regular income : You need a regular income to pay off your debts regularly. You must be able to officially declare this regular income. Together with the banker, you determine the amount of payment and terms based on your income.
- Loan type : There are several types of loan. These are named according to their purpose. You should also apply for a loan according to your needs. Credit types: Personal Loan, Car Loan, Mortgage and Home Improvement Loan.
- Loan interest rates : Banks provide loans with low interest rates to customers with whom they have been working for a long time. Therefore, ask for a loan cost table from your bank, which has been your account for a long time. In addition, banks organize campaigns at various times. If you do not need urgent cash, wait for the campaign periods. Especially the New Year, Christmas, official holidays, etc. Get information about the loan interest rate from at least 3 banks. You should have easy access to these banks. You should be able to make and track your payments easily. Decide on the bank to which you will borrow by looking at the list of the largest banks in the UK.
- Open bank account : You may not have an account at the bank from which you will withdraw credit. For this reason, the bank may ask you to open an account. Some banks may request that your account be opened at least 1 month in advance.
- Loan amount : The amount of credit that each bank can give is certain. A personal loan can usually be between £ 1000 and £ 50,000. This rate is determined by looking at your economic table, credit score and regular income. If these qualities are not good enough, you may not get the amount of credit you want.
- Payment Plan : Repayments of personal loans are usually made within 1 to 7 years. This payment schedule varies according to the loan amount, monthly repayment amount and the bank.
- Loan application : You can visit the official websites, mobile applications and branches of the banks to apply for a loan. You can make your small loan applications without going to the branch. Banks with online banking services have a loan calculator on their websites. Calculate the cost of your loan on this calculator.
- Other matters : You must be over 18 years old. You must be a citizen of the country where the bank you are applying for is located. Example: If you are going to get a loan from Lloyds Bank, you must be a UK citizen. You can get credit from the representatives of international banks in your country. Example: Handelsbanken is a bank based in Sweden. However, it provides retail banking services in the UK. You can apply for a loan from the branches of this bank in United Kingdom.
Personal Loans in UK
The UK is home to the strongest and largest banks in the world. There are banks that specialize in both commercial and personal banking. You can get personal loans from banks that offer personal banking services. Of course, you must meet the above conditions.The rules for obtaining personal loans are the same in many countries.
- be over 18 years old.
- have a steady income
- have paid your debts to banks before without delay.
- have a high credit score
Which banks offer personal loans? List of banks offering personal banking services in the UK.
- Lloyds Bank
- Bank of Scotland
- Royal Bank of Scotland (RBS Bank)
- The Co-Operative
- Tesco Bank
- TSB Bank
- Metro Bank
- First Direct
For personal loan in the UK, you must first have a bank account. If possible, open an account 1 month before taking credit. If you need urgent money, you can choose the banks where you have an account first. There are also digital banks. It can lend up to £ 85,000 in digital banks that provide services in retail banking.
We hope we were able to answer your “How to get personal loan” question.