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What To Do When In Need Of A Personal Loan

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Do you wish on embarking on a getaway trip with your friends and family, but do not have the required cash to fund the expenses? There is no need to worry, as personal loans available online let you enjoy the various getaway locations, without you having to break your bank, or queuing outside a loan agency.

Considering that most personal loans are unsecured- as no collaterals are used- you need to have an excellent credit history to get one. The trends are however changing, and many of the online lenders are starting to put more emphasis on other points like the lender’s education, previous payment history, and previous payment plans, to name a few.

If you feel the need to improve your credit score, you can head over to for a thorough list of tips and guides. The APR of 36 percent is still better than what is presented by the unscrupulous payday lenders, who often offer an APR hovering in three digits. The different type of lenders that you can go to when looking for a personal loan are:


Direct lending is when you get a loan from an online website, without having to bear the hassle of a middleman. Direct lending is the simplest form of getting your hands on a personal loan and boasts of an attractively low APR since no middleman is involved.


A loan broker plays the role of an intermediary and helps you in finding the perfect personal loan for yourself. A single application is handed over to the broker, who then takes over the responsibility of looking for the best lender for you. Once the lender thought to be best for you is found, you can work with them to initiate the process of the loan.


A peer to peer lender has a group of investors who accumulate their reserves to fund every personal loan. One or more lenders will contribute altogether to generate the required amount of your loan. Once the total amount of the loan is generated, the money is handed over to you. The repayment plan is very much like every other personal loan, where you hand over the repayment to the P2P agency which then disperses the amount and the interest to the individual lenders.

You need to provide a few documents before applying for a personal loan. Some of the important documents that you would be required to provide are:

  • Identification forms.
  • Verification of address through utility bills.
  • A proof of your previous income

Your credit history does eventually play an important part in the overall process. If you have an excellent credit history, you will end up securing a personal loan with a lower Annual Percentage Rate or APR. Borrowers with a poor credit history can secure one too, but in most cases, they either need collaterals or cosigners.

If the two are not available, then the APR for the loan will rise up to 36 percent.

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