Personal loans & what you need to know when applying for one

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From buying a car to funding a wedding, helping to pay off an outstanding debt, or making improvements to your home – personal loans can help pay for those essential investments that life often throws our way.

However, there are a number of considerations you need to bear in mind when it comes to applying for a personal loan.

What do you need to apply for a Personal Loan?

According to the responsible lending rules included within the Financial Conduct Authority’s (FCA) Consumer Credit sourcebook – lenders must undertake an assessment of the creditworthiness of any potential borrower.

This is determined by a number of factors:

  • The type of loan.
  • The loan amount.
  • The financial position of the person seeking the loan.
  • The customer’s credit history.
  • The customer’s existing financial commitments.
  • Any future changes in circumstances which could impact the customer from a financial standpoint.

Therefore, before you apply for a personal loan it is important that you are confident that you can afford the monthly repayments.

Besides running an assessment of your overall creditworthiness, lenders may also have their own eligibility criteria you need to fulfil in order to get a quote e.g. minimum age or income requirements.

Remember to have your address history for the last three years, annual income, employment details, residential status and bank details handy – Lenders will need this information to check your identity and creditworthiness.

 

Applying for a Personal Loan with Shawbrook Bank

With Shawbrook, you can get a quote for a personal loan without affecting your credit score.

That’s because we use something called a soft credit search, which assesses your credit profile without leaving a footprint visible to other lenders.

 



What’s more – when you apply for your instant quote for a personal loan, we’ll let you know your guaranteed personal rate from the very beginning. That’s why you won’t see any potentially confusing or misleading interest rates in any Shawbrook advertising. This is an important element of our five-point Transparency Charter.

This is built on our commitment to providing an honest, upfront, open, clear and fair service for all of our customers.

With a Shawbrook personal loan, you could borrow from £1,000 to £35,000 and loan terms are available from one to seven years, dependant on loan amount. In addition to getting a fixed rate, your monthly repayments will also be fixed over the whole term.

However, in order to apply for a personal loan with us, you’ll need to meet our eligibility criteria:

    • Aged between 21-75 years.
    • You have been a resident in the UK for a minimum of 3 years.
    • Minimum annual income of £15,000.
    • Own a UK personal bank account.

If you tick all of these boxes, you should be able to apply for your instant quote, however you will need a number of personal details readily available for you to enter into our online application form.

This includes:

  • The details of your addresses for the last three years, as well as your actual residential status (owner occupier, living with parents, council tenant or tenant).
  • Email address and contact number.
  • Employment details.
  • The loan amount.
  • The loan term.

It’s also useful to bear in mind the fact that you can make either a single application or a joint application depending on your specific situation.

Once you fill in the online form and if you are eligible, you’ll instantly find out your guaranteed personalised rate. Based on this information, you can then decide whether you want to proceed with your application and continue along with the process – which is when we’ll ask you for your bank account details.

If you’re happy to proceed you can accept the quote and formally apply and allow us to complete a full credit search. We will validate all the information you have supplied and if you are accepted – we will then send across the loan documents which will require your e-signature once you’ve reviewed the terms and conditions. This is a much more simple and hassle-free method in comparison to printing and reviewing the paperwork and sending via post.

The money will appear in your account within 3 working days once you’ve signed and returned the loan documents.

Our focus on consistency and delivering the best possible service for our customers is reflected by our position as a Feefo Gold Trusted Service. We have also won awards for best unsecured loan lender.