Following are the general requirements for Personal Loan Application

   – 18 years old and above

   – Citizen with a banking account

   – Employed for the last 6 months

   – Minimum Salary of $1000

   – Other requirements may apply

In certain circumstances, even you are having a bad credit rating, you are still entitle for personal loan, but be prepared to pay higher interest, lower loan amount and shorter loan period.

The terms and conditions may varies from each financial institution, please check with the respective office before submit your application.

It is always recommended to submit a few applications, you may or may not need to accept any offer from the bank.

If you furnish all the documents ( such as personal information, income proof ), it approval usually take less than 72 hours and the loan amount will be disbursed to your account in less than 14 days.

Please take note that the time took to approve your personal loan largely depends on your credit rating. If you credit rating is in good shape, no bad record on defaulting credit card payment and mortgage, you might be able to get your loan approve in hours and get in money in less than 2 working days.

3,000 to 10,000 is very common among all the personal loan amount.

Generally the loan amount of a personal loan depending on your current financial status and your capability to repay the monthly installment.

The amount of loan depending on a few factors:

-          Your current Income – the higher your income, the higher your loan amount.

-          Your current expenses and loan commitment ( credit card, mortgage, car loan, others personal loan.

-          Your credit rating – the lower your credit rating, the lower the loan amount.

-          Loan Tenure – The longer the loan tenure, the higher the loan amount.

Check out the website of the financial institution that offer personal loan, usually they provide a personal loan calculator to work out the eligible loan for you.  

Just fill up the form which usually including your current income, numbers of dependent, your current loan, mortgage, and the period of the loan. You will get your entitled loan amount immediately.

A personal loan is usually an unsecured loan render to an individual without any collateral.  Since it is an unsecured loan, the approval is solely depends on borrower’s credit rating.  If you credit rating is good, that means you are not bankrupt nor you default your credit card payment or mortgage, you will not have a problem secure a personal loan.

If you are bankrupt or having a bad payment record in your credit card or mortgage, it will be difficult to secure a personal loan as the bank sees this as high rick business transaction.  Even if you may get it, be prepared to pay high interest rate and the loan amount will be very low.

Characteristics of Personal Loan

-          No Collateral Needed – you don’t need to pledge your asset to the bank

-          High Interest – higher then housing loan but less than credit card advance

-          Short Repayment Term – usually less than 3 years

-          Low Loan Amount – loan amount depending on your salary earned.

-          Interest are not Tax deductable – unlike your housing loan, interest is tax deductable.