If you are looking for a personal bank loan, there are some things you should consider first before you make an application. There are many lending institutions as well as different terms and conditions available, but you need to select the one that is the best for your financial situation. Here are some tips to help you get a bank loan fast.
1. Don’t apply for several loans with the hope that one will come through. This can have an adverse effect on your credit report. Do your research and apply once for a loan that you have a good chance of getting.
2. The bank will check your credit history. You can do this first and make sure it is accurate and good. If you have a bad credit score, the bank may refuse to give you a loan or charge you a very high interest rate. A person with a good credit score may pay about seven per cent interest, but a person with a bad score will pay significantly more.
3. If you have a steady job, you have a better chance of getting approval than if you don’t. Even self-employed people have more trouble getting a loan than people with a stable job.
4. Once you are sure you are a good risk for the bank, shop around. The annual percentage rate (ARP) is the true cost of the loan, and this may be different from different lenders. Some banks are up to 2.3 per cent higher than others.
5. Be sure you understand all the terms and conditions including extra fees before you apply for the loan. Some banks offer better terms for current customers, and even for them, there are other condition such as having a credit card from the bank that has been used for up to six months.
6. Ask about early repayment charges. It can save you a lot in interest payments if you repay your loan earlier than the given term. Because of this, some banks charge a large fee for early repayment. This can offset the amount you save by repaying early. There are loans that have no early repayment fee.
7. You may want to consider other forms of borrowing. A 0 per cent credit card may be a cheaper way to borrow money than taking a bank loan depending on whether or not you can repay the card within the 0 per cent period. The longest 0 per cent deal is about 16 months. You could make a large purchase and repay it interest-free.
8. Secured loans have lower interest rates, but can be very risky in the event you don’t maintain your monthly payments. You could lose your home or other collateral that was used as security on the loan. This is the best and quickest type of loan, but you must be 100 per cent sure you will make regular payments or you could be in bigger trouble than you were before you got the loan.