In the past, applying for a personal loan was often a long, frustrating process. It started with a call to the bank, and that followed up with a personal meeting with a bank loans officer.
After that, there were forms to fill out, questions to answer and then the wait to see if you were approved. For personal loans, this also included the proof of collateral for the loan as well as any other requested information or documentation.
Today, thanks to the internet, it is very easy to apply for a personal loan right from the comfort of your own home, office or mobile device. These online sites provide secure, convenient application processes that allow for a streamlined process as well as extremely fast application approval.
What is Required?
With the ability to apply for a personal loan online, there is limited information required. The best companies do not require collateral, but they are still able to provide loans of up to $500,000. Most will have a floor level for personal loans as well, which will vary based on the specifics of the company.
The application process, which may also include the option to complete a pre-approval, is very streamlined. Applications typically involve a simple online form that simply asks for basic personal information.
Once submitted the applicant will be contacted by the online loan company, typically with 24 hours. Another option may be to apply by phone, which allows the individual to ask questions as necessary.
Types of Loans
To apply for a personal loan, loan companies will ask the reason for the loan. For many applicants, this may be to consolidate credit card debts, to pay off high-interest loans, to address unforeseen expenses such as medical bills or to plan a wedding or to cover unexpected costs.
Personal loans cannot be provided to businesses. Instead, these loans will need to be approved as a business loan, which will have different parameters and factors to consider.