Secure Personal Loan: A Step-by-Step Guide

  • If what you want is to buy a home, a car, or you have to face a large expense and you do not have all the money, the best option you have is to request a loan.
  • If what you want is a “cushion” of money that you can use in case you find yourself in a hurry, the most advisable thing would be a loan

Asking for a Personal loan or credit is the order of the day. Rare is the person who has not had to go to a third party on occasion in search of money to face an unexpected expense.

Unless you are cautious and save part of your salary every month for possible expenses, it would not be strange if you had to resort to external financing to pay for unforeseen events or large purchases.

These types of loans that you resort to to cover a specific expense are called personal loans , and among them, depending on the purpose you are going to give the money, you can opt for different types: studies, renovation of home, travel, consumption or car, among others.

Asking for a loan is sometimes inevitable but, before deciding where or who to go to, it is important to evaluate some points such as what type of lender to use or know in advance what type of documentation the entities will require.

That means identifying all your needs is the key, so that you can request your personal loan without any complications.

Where can I request a personal loan?

When you decide to apply for financing, the first thing you should ask yourself is where or who you will have to go to to get it. If you are already a veteran in this task, you surely know exactly what to do, but if, on the contrary, it is the first time that you find yourself in this situation, you will most likely be a little lost.

In Every country there are several lenders that you can go to to request money, although depending on different variables and your customer profile there will be some that suit you better than others. You can mainly go to the following entities:

Banks : both Private and State owned banks with representation in your country can offer you a wide range of personal loans.

Savings banks .

Cooperatives of saving and credit .

Private lenders (private capital companies): the products that characterize this source of financing are quick credits or loans, microloans , and online credits.

Large stores, supermarkets and stores : these establishments do not offer you an amount of money as such, but rather they finance the purchase of certain products. The great advantage they have is that the interest rate is usually 0% during the first months.

Credit card companies supported by financial institutions.

Platforms that manage Personal loans between individuals .

Requirements to request a personal loan

Before going to any of these entities to request financing, you should keep in mind that depending on the amount you request and the type of loan, you will have to meet a series of requirements. Among these, the most common are:

  • Be of legal age .
  • Have a valid identity document (ID, passport, driving license…)
  • Explain the exact amount you need and the purpose for which you are going to use the money.
  • Demonstrate solvency .
  • Do not exceed your maximum debt capacity .
  • Debt repayment guarantee . In most cases, with personal loans, it is not usually asked for someone to guarantee you so, in the event that you do not pay, it will be you and not another person who will respond with all the income, rights and assets present and futures.
  • Request for proof of income. If you are self-employed, you will need to provide your self-employed registration certificate, the social security contribution or your last VAT declaration, while if you work as an employee, it will be enough for you to show your last two or three payslips. If, on the other hand, you are not working but you have recurring income, you must also prove it.
  • Photocopy of the personal income tax return , that is, the tax return.
  • Work contract.Sometimes you may be asked for a copy of the employment contract. Whether it is indefinite or not will be one of the keys that will be taken into account when approving or denying you the loan.
  • Not be included in any list of defaulters such as ASNEF or RAI.
  • Do not have current debts with non-payments .
  • Deeds of your house, rental contract, declaration of assets or sworn declaration of your assets, sometimes.

Furthermore, as you will see, it is not surprising that in order to give more favorable conditions or even to approve the concession, they “demand” or “advise” that you contract other products with them or that you take your money there. For example, they may ask you:

When to request a loan?

If what you want is to buy a home, a car, or you have to face a large expense and you do not have all the money, the best option is to request a personal loan.

This type of financing is used when we know that we will need a specific large amount of money and that we will have to pay it back over a long period of time. Therefore, it will be essential to sign a contract detailing the repayment years, interest, commissions and monthly payment .

Once they approve the concession, they will deposit the amount into your bank account and you will be able to use the money. From that moment on you will have to start repaying it along with the interest previously set.

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