Personal Loan is an unsecured credit provided by financial institutions based on criteria like employment history, repayment capacity, income level, profession and credit history. Personal Loan, which is also known as a consumer loan is a multi-purpose loan, which you can use to meet any of your immediate needs.
Personal Loan can be secured or unsecured; A secured personal loan is a loan guaranteed by an asset, such as a car.
Personal loans have two interest repayment types, fixed and variable. Both have different features that will influence whether they are suitable for you.
Some of the reasons to take out personal loans are
- Make some home improvements
- Pay for a wedding
- Head off on holiday
- Debt consolidation
- Buy a car
- To cover Medicals expense
Document Requirements
- Generally, lenders require at least two forms of identification from the ones listed below:
- Driver’s licence
- Passport
- Proof of age card
- Passport, birth certificate, driving license and a copy of marriage certificate if married.
- Birth certificate
- Citizenship certificate
- Pension card or health care card
- Utility bills
- Overseas driver’s licence
Income Verification
To verify your income , you will also have to provide lenders with the following documents while completing the application form.
- Latest three month’s payslips
- Bank statements
- Tax returns & Notice of Assessment of the last two years (if Self Employed)
To support the application additional Financial Information is also required
You would also have to submit information regarding your assets, debts, and liabilities for which you need to keep the following documentation ready.
- Credit card and loan statements from your current loan accounts
- Income statements from any of your income-producing assets
- An estimation of your current expenses
- A current rent or mortgage statement
Lenders will verify your employment too when you apply, and for that, you will have to provide the lender with details of your employer, like the employer’s name, address, contact information and also the duration you worked with them. If necessary, we will get in touch with your employer to verify the employment-related information provided by you.
Personal loans offer a flexible way to finance various needs, from home improvements and weddings to debt consolidation and medical expenses. These loans are provided based on factors like your credit history and income, and can be secured or unsecured with fixed or variable interest rates. Lenders typically require documentation for identification, income verification, and financial information to assess your application.
Call to Action:
Ready to explore your personal loan options? Contact Finance Wiz today for a free consultation. We can help you understand the process, compare loans from different lenders, and find the best solution to meet your needs.