Frequently Asked Questions About Getting Loans

Anybody can face a monetary issue at some point in their life. The need for money can arise out of events like planning a wedding, buying a car, buying a property, going for higher education, and more. In such cases, getting an instant personal loan is a good idea to make important monetary decisions.

Common FAQs Regarding Getting A Loan

Q) How Much Money Can I Borrow?

For starters, your credit rating and credit history play an important role in determining how much money you can borrow. Most instant personal loan are approved almost instantaneously. Sometimes, the lenders will determine the max amount of money they can lend based on your disposable income.

Q) What Are My Repayment Options?

Most banks will advise you to instruct a standing order to automatically deduct the monthly repayment from your account. However, you can choose to pay it manually as well.

Q) What Will Happen to My Repayments if I Move Away?

Everything will remain the same. You can still access your loan account via online banking and make the payments for your instant personal loan directly.

Q) How Much Time Does It Take for an Instant Personal Loan To Be Processed?

The processing period depends on your loan requirements and borrowing amount. Sometimes, it can take less than 48 hours, while other times, it can take up to a few days. Hence, do thorough research if you’re facing an emergency. Different types of loans have different processing times.

Q) What Documents Are Required for an Instant Personal Loan?

Generally, banks will ask for your ID and address proof. Apart from that, they may go on to ask for your bank statements, income slips, the purpose of the loan, and other details depending on the borrowing amount.

Q) Does My Credit Score Affect My Borrowing Limit?

Yes, your credit score plays a huge role when you’re applying for small instant loans. A good credit score will get you low-interest rates, while a bad credit score will get you high interest rates.

Q) Can I Get an Instant Personal Loan With a Bad Credit Rating?

In most cases, yes, you can. However, it mostly depends from bank to bank and on an individual to individual basis. You may also get charged a high interest rate for your instant personal loan. As a good measure, you should consult debt advice firms to help manage and improve your credit ratings.

Q) Why Do Instant Personal Loans Have a High-Interest Rate?

Despite having a good credit rating, you can get charged a high interest rate due to administration costs. These costs are incurred to help set up the loan for the short duration and to process it as soon as possible.

Q) What Are My Chances of Getting a Small Instant Loan?

Apart from credit rating, lenders will assess your requirement for taking a loan, your credit history, yearly income, and other factors. In most cases, lenders will do their best to get you a loan, so your chances of getting rejected are actually low. The only difference across various lenders is the interest rate and processing period.

Q) Will My Property Be Used To Get an Instant Personal Loan?

Not all loans require you to secure them against your property. Small instant loans or instant personal loans seldom need collateral. If a bank asks you for collateral, you should think it over or look for other lenders. Failing to pay a secured loan gives them the right to seize your property in question.

Q) What Will Happen if My Financial Circumstances Change?

Most banks may or may not charge you for paying off a loan early. In case of the opposite, you can talk and discuss your financial status if you’re not able to repay on time. Most creditors will be helpful enough to arrange a different payment plan for you. You can also consult a debt agency to help discuss your situation with the creditors on your behalf. Many agencies work for free, and many others may require you to pay a small fee.

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