Nyamweya is a columnist with a Kenyan print media.He is also a freelance writer with various online and offline media platforms
When was the last time you won a lottery? Well, this is not everyone's cup of coffee since the chances are leaner. All the same, if you have been lucky once or twice, it sounds great. However, even with the large sum of cash, the mystery of never-ending bills, vacation trips, shopping, buying a new home, or starting a new investment will never give you a break. It would be best if you definitely made a sound financial decision to cover such expenses. Simply put, the idea of a personal loan will add you to financial freedom. A personal loan is money you borrow for any purpose, such as debt consolidation, an unanticipated medical bill; need to purchase a new appliance or a student loan. Normally, you pay the money back with specified interest through monthly installments for some period of time, usually two to five years. Additionally, they do not need collaterals for approval.
Whether you need long or short term loans online, it is no longer a hassle today. Many companies have specialized in offering a lending space to all the potential clients that meet their given criteria, provisions, and settings. Personal loans are handy and helpful when you lack alternative options to attend to special problems; they will also help you improve your credit ranking, adding you more potentials of attracting higher loan limits in the future.
If you need a personal loan, then you are in luck. The internet's significant progress only makes it easier, exciting, and convenient, as you can pick on a legit website and start the process. Usually, you will need to follow simple steps, followed by a trouble-free application process on your website of choice. The procedure is time-conscious, and upon successful approval, you will get back on your feet sooner than expected.
Having said that, let us check on the 3 step procedures to apply for a personal loan:
- 1. Pre-qualification and comparing offers
- Pre-qualifying for a personal loan is the first step before the loan approval process. Apart from providing lenders with a broadcast of your solvency, it also gives you a preview of the loan you might eventually obtain. However, this stage does not warranty you a loan; since lenders will need to prove your information before the final endorsement. Some of the procedures at this stage include:
- Filling out a pre-qualification form with details of your income, employment details, and any current debt.
- The lender will then perform a lenient credit check and assess your credit history. It helps to determine the "risky" bounds of the borrower.
- Depending on the discoveries, the lender might either grant or deny your pre-qualification. In case you pre-qualify, you will obtain information about the loan you qualify to receive.
- You have the option to either accept or reject the pre-qualified offer. In the case of acceptance, you will officially start the application process, requiring extra information and authentication.
- 2. Selecting and gathering loan documents
It is essential to know the rate, terms, and features that will merge within your budget and your borrowing necessities. After this, you can embark on completing the application. Here are some of the documents to be verified:
- Confirmation of personal address.
- Proof of employment status.
- Your education history
- Financial details, including full savings, any retirement assets, and current unresolved debt.
- The social security number
3.Submit your application and get funded
After going through the terms and conditions of the loan, you can then submit. This automatically allows the lender to verify your information intensely, such as pulling your credit reports or contacting your current employer. If the whole process checks out, you could be approved that same day. At times it takes longer if you need to provide extra documents to the lender. In case of loan approval, you need to sign the loan agreement; the timeframe of receiving the funds typically depends on the lender.
Apart from having the money to offset your needs, personal loans can change your credit rating image once you comply with the conditions from the lender. Credit agencies usually check on the consistency of loan repayment. If your credit score is impressive, it means you qualify for significant growth in your score, giving you the added benefit of accessing another loan in the future. Additionally, personal loans have no stringent rules and clauses relating to using the money after approval. It then goes without a doubt that personal loans are indeed earnest.