Simple Ways On How To Get a Personal Loan From A Bank You Should Know

How to get a personal loan from a bank

Personal loans are designed to meet your specific personal needs, no matter what your current credit situation may be. Also, there are several ways on how to get a personal loan from a bank.  However, applicants must meet certain criteria to qualify for a personal loan.

To get a personal loan from a bank, you need a verifiable savings or current bank account, an acceptable credit score, and a stable income. However, Most banks offer an easy process for personal loans after approval has been granted.

Personal loans have a lot of benefits for borrowers who require money quickly and prefer the security of a fixed rate and payment for the life of the loan. Therefore, In this article, we will provide a guide on how to get a personal loan from a bank and everything you need to know about it.

How Do I Know If You Are Qualified For a Bank Personal Loan?

Personal Loan From a Bank
Source: pexels.com

To know if you are qualified for a bank personal loan, your credit score is important. Your credit score is the quickest way to know if you’re eligible for a bank personal loan. In most cases, your credit score is a number used by a financial institution to know whether you qualify for credit based on your credit history.

Hence, the Applicant must have a good and satisfactory credit history within the last 12 months. Also, other criteria are required to qualify for a bank personal loan such as:

  • Receiving salary for a minimum of 6 months.
  • Applicant Must run an active current or savings bank account.
  • Applicant must have a minimum net salary income of 100,000 Naira.
  • Applicant must have a valid means of identification card (driver’s license, BVN, NIN, voter card, or international passport).
  • Applicant must have a salary bank statement for the last three months.

What Is The Benefit Of Getting a Personal Loan?

There are several benefits attached to getting a personal loan, and it is safe to get a personal loan. A personal loan is a good choice if you have room in your budget for a fixed payment or reliable income. Taking a personal loan is not bad for your credit score.

Personal loans can provide an affordable alternative to credit cards and help you finance life expenses while saving on interest.

However, Personal loans may sometimes be bad options, especially when it comes to taking it for college tuition, discretionary purchases, gambling, investment, vacation, living expenses, or paying off debt. However, Personal loans offer quick access to money for various needs but require reasonable evaluation.

How To Get a Personal Loan From a Bank

Personal Loan From a Bank
Source: pexels.com

Here is a guide on how to get a personal loan from a bank:

1. Check Your Credit

One of the easiest steps in getting a personal loan from a bank is by checking your credit. Checking your credit reports can help you with an idea of what your bank or lender may see when you apply for a personal loan.

When you check your credit, it will help you know if your information is correct, it will help you know if you are qualified for a loan or not, and it will also detect fraud or identity theft. To check your credit, all you need to do is go on a website and click on Check free credit score calculator.

There are some requirements needed to check your credit. First, you will need to provide your first and last name, Email, BVN, and the phone number linked to your BVN before checking your credit.

2. Compare All Personal Loan Terms

Comparing personal loan terms online will help you determine if you are eligible to apply for a personal loan. It is very crucial to compare other loan terms including repayment terms, credit score requirements, loan restrictions, fees, discounts, and funding times.

3. Calculate How Much You Need

Evaluating how much money you need can help you avoid borrowing excessive amounts of money. Additionally, some lenders charge a originated interest, which is deducted from your loan disbursement. You may need to borrow a higher amount to account for the fee.

4. Research And Compare Lenders

Doing your research will help in the long run of requesting personal loans. It is good to compare other lenders to get familiar. This can be achieved by reading personal loan reviews and ratings to help you determine the best personal loan lenders. It is helpful to have all your finances under one conventional roof, but you may be able to save more money with a different lender.

5. Choose a Bank And Apply

After deciding on the best bank that has the best offer for you, you can easily apply through the lender’s website. The process to apply can vary depending on the bank you choose, but in general, there is some basic information that needs to be provided such as:

  • Means of identification
  • Valid and active contact information
  • Housing status
  • Employment and income status
  • Loan terms.
  • Immediately after submitting your application, your bank will review your information to confirm if you are qualified to get a personal loan or not.

6. Confirm Your Loan Application

Confirm your loan application after providing the necessary basic personal information needed. Know what documents are required for income proof. This will help you ease your loan application process.

Documents required for a personal loan include:

  • Bank statements
  • Valid Identity Card
  • Credit score
  • Debt to income ratio
  • Collateral
  • Income proof

Note that Every bank has different paperwork requirements. Once you have submitted your application, you may be asked for a different approval requirement and collect different forms of documents to know whether to take a risk as the applicant.

7. Choose Your Loan Type

Personal Loan banks offer different types of loans to cover different needs. Some banks are very flexible in how you may choose to use the funds, while some banks may be specific on how you use the funds and what you use it for. It is important to know if you can use the funds for what you need before applying. There are various types of personal loans including:

  • Debts consolidation loans
  • Credit card refinancing loans
  • Event Loans
  • Medical loans
  • Emergency loans
  • Home improvement loans

8. Accept The Loan And Sign The Agreement

After the bank has reviewed your documents and decide if you are eligible for the loan. You will get approved and finalize your loan documents by accepting the terms. Once you sign off the loan agreement, you’ll get your deposit within a week

Additionally, you need to keep track to know when your payments are due and consider setting up an automatic payment method. Some banks offer interest rate discounts if you make use of autopay.

How Long Does It Take To Get a Personal Loan From a Bank?

Depending on the bank you applied for a personal loan from, most loans are instant as soon as approval has been issued, while some banks take a few days or weeks after approval. It can take 2 to 3 working days to get approved by a bank for a personal loan. Note that, this depends on the type of bank you choose to get your loan from. Getting approved may take a little time if you do not follow the instructions.

What Is The Minimum Net Salary Income Required For a Personal Loan?

To apply for a personal loan, the Applicant must have a minimum net salary income of 100,000 Naira.

Conclusion

As mentioned earlier, a Personal loan can provide an affordable alternative to credit cards, and it will help you finance life expenses while saving on interest. This article has provided a guide on how to get a personal loan from a bank and we hope it is helpful to your search.

Reference

  • Creditdirect.ng
  • Bankrate.com
  • Experian.com
  • Investopedia.com

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