Written by: Andy Townsend
Head of Marketplace Distribution, Consumer
11th May 2021
The loan approval process can vary from lender to lender and will depend on the type of loan you’re applying for and your circumstances. This can take anywhere from a few hours to a week or so depending on the type of loan and lender you choose.
At Shawbrook, we use the information you’ve submitted in your application to offer a guaranteed, personalised quote, meaning you should get a decision right from the start. However, there are some cases where we may need further information before we can give you a decision.
If you applied for a personal loan before, the process may have been confusing. In this guide, we’ll take you through each step of a typical loan application, so you know exactly what to expect when you apply.
When you ask to borrow money from a lender, you’ll need to go through an application process. Lenders will use the information included in your application to assess your ability to afford the repayments and take into consideration key things such as your income and credit history.
Loan applications can vary depending on the lender you choose. Make sure you check the application process as some may include a hard credit check right from the start, which will show on your credit report. For more information on hard and soft credit checks, read our ultimate guide to credit checks.
When applying for a personal loan with us, you’ll find our loan application on our website. Once you fill in our simple online form, we’ll provide you with a personalised quote without impacting your credit score as we only carry out a soft credit search. This means you can take the time to consider your guaranteed rate before proceeding with the application.
If you decide you’d like to go ahead with your application, we’ll ask you for more information and conduct a full credit search in order to proceed with your application.
The online application can vary in length depending on the lender you use, how prepared you are before starting the application and whether a decision can be made instantly or will take some time. Not all lenders will offer quotes but at Shawbrook, we’ll provide you with a personalised quote that won’t impact your credit score.
The first step is to find out your likelihood of acceptance for a loan. You can check your eligibility through a comparison website or for our online application, we’ll provide you with a personalised quote upfront. This process should take just a few minutes.
Before you start your online application, you should make sure that you have all of the relevant information you might need to input. We’ll need a few things from you at this stage, such as your bank details, your residential addresses for the last three years and your salary. Just let us know how much you’re looking to borrow and how long you think you’ll need to repay the amount.
We’ll then complete a soft credit check on you but don’t worry – this won’t show up on your account and doesn’t affect your credit rating. It simply gives us a good idea of your financial situation, so we can assess whether you’re likely to be able to repay the loan you want to apply for. We can then let you know what rate we can offer you for your chosen product.
The length of time it takes to get a loan after accepting a quote will vary depending on your lender.
Typically, if you’re offered a quote and want to proceed with your application, you’ll be sent your loan documents to review and sign. It’s important you read this pack thoroughly and are happy that you’ll be able to meet the terms of the agreement. Once you have signed these, we’ll carry out additional checks to make sure everything is okay. To find out more about the checks a lender carries out, read our ultimate guide to credit checks and searches.
Your loan documents should have all of the relevant information and terms regarding your loan. If you’re concerned about keeping up with your repayments you should not enter into a loan agreement. Instead, seek advice on your best options. There are many charities that can offer support including Step Change and National Debt line. If you have any questions about your loan agreement, a member of our team will be happy to assist you.
The length of time it takes for a loan to go into your account can vary on the lender you choose. At Shawbrook, once you’ve signed your loan documents and returned this to us, you should expect to see the amount in your account within three working days from when we receive your signed loan documents.
To make things as simple and hassle-free as possible, it’s a good idea to get everything you need to apply ready before you start. Being prepared and organised can help to speed up the time it will take you to complete the application.
Having the following items to hand helps to move the process along smoothly:
It’s also important that you’re clear about how much you want to borrow and how long you think you’ll need to pay the amount back.
You can find out more about personal loans by reading our ultimate guide to personal loans.
We’re committed to being fair and transparent with everyone that applies for a personal loan. When you apply for an instant quote, it won’t impact on your credit score and we’ll give you a clear picture of your guaranteed and personalised rate from the start. Find out more here.
All loans are subject to status. The interest rate offered will vary depending on our assessment of your financial circumstances and your chosen loan amount. Terms and conditions apply.