Cash Loans : Get Personal Loans with a Simple Approval Process

Getting a personal loan may be the best way for you to get the money that you need right now.

Are you looking for a cash loan with a simple approval process? Do you want to take out a loan with low interest despite a poor credit? You can read through our guide about personal loan offers.

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Are you planning to renovate your garage or buy a mountain bike? Maybe you are thinking of going on a trip and you need some cash to finance it. Getting a personal loan may be the best way for you to get the money that you need right now.

What is a personal loan?

This is a loan for a fixed amount of money that you will be allowed to borrow for a predetermined rate. You will need to repay this loan periodically over a set time. There are several places that you can go to for a personal loan. Banks, online lenders, and credit unions provide this service.

There are two types of personal loans.

The first one is secured. The other is unsecured. The secured loan, based on the name, requires some form of security. This means you have will be borrowing the money and putting up an asset that you own as a guarantee of payment. The good thing about secured loans is that the interest is usually cheaper compared to unsecured loans. However, the risk can be greater because if you fail to pay the loan, you lose the property that you used to secure it.

Unsecured loans, on the other hand, are allowed based on the credit score of the borrower. This is the guarantee that the lender looks at to assess if you are capable of paying the money back.

Are you eligible for a personal loan?

If you want to apply for a personal loan, you have several options depending on the amount that you are planning on loaning and your eligibility. Let’s start by finding out how lenders assess whether they will be approving your loan or not. All borrowers must be older than 18 years old to qualify for loan applications. Some banks allow only those 21 years or older.

Additionally, you need to be a UK resident. You will be asked to present your proof of identity. A valid passport, a UK driving license, or an EU national ID card are the best proofs. You will also need to provide copies of at least two proof of address.

Besides the IDs mentioned above, you will also need a copy of the current year’s Council tax bill, valid HMRC documentation, this year’s notification letter from any local authority or benefits agency, or a current tenancy agreement from a recognized letting agency.

There are still other documents that you can provide. IT is better to directly inquire from the lending bank or agency to check which ones are valid. If you are planning on applying for a loan from a bank, most require that you already have an existing loan with them. Below are more factors that will determine if you qualify for a loan or not.

Income

Borrowers who have a steady income will have a higher chance of getting their loan approved. Some banks also require that the borrower have a regular income of £6,000 or more per year for their loan to be approved. If you have a certain amount of money coming in on a regular basis, this will let the lender know that you are going to be able to afford the monthly repayments.

Employment

Borrowers with a full-time job have a higher chance of securing a loan than people who are working part-time or are unemployed.

Credit Score

An excellent credit score rating gives the lenders a good idea if you can manage your money well. It indicates that you have a history of paying your loans promptly. People with good credit scores don’t just get their loan applications approved, lending facilities also often offer them better rates.

Is there a limit to the amount you can borrow?

It is up to the bank or the loan company to decide how much you will be allowed to borrow based on what they feel you are capable of repaying. They will base this on your income, your assets, and your credit score. The higher your savings and investments and the more valuable your possessions are, the higher the amount that you will be able to borrow. For personal loans, you can borrow between £25,000 to £100,000 depending on the factors mentioned above. Some banks grant secured loans for £250,000 or higher.

Will a bad credit score affect my loan application?

Applying for a personal loan without strong credit can be challenging, especially if you are planning on loaning a huge amount of money. The loaning company may ask you to secure it with an asset, such as a property or a car. This will reassure the lender that, should you default on your payment, they can get the loaned amount back by repossessing and reselling your asset.

Some lenders allow bad credit loans. Unfortunately, these have significantly higher interest rates. Additionally, you will only be able to loan a smaller amount. Although, if you successfully pay this type of loan, you will improve your credit score significantly. You may even qualify for an unsecured personal loan in the future.

You can also look for a guarantor who will help you with your loan application. A guarantor is a friend or family member who has a good credit score. That person will promise the bank that if you fail to pay your loan, he or she will be the one to cover the payment.

If you can’t find a guarantor and still fail to qualify for a bad credit loan, you can also consider getting a payday loan. Lending companies allow people to borrow money through this system without conducting any credit checks. The only setback is that the interest rate is astronomically high and you will need to repay the loan within the month at most. This is the worst kind of loan that you can get.

What are the best places to get a personal loan?

There are several money lending companies and banks that you can choose from in applying for a personal loan in the UK. We will look at 5 of them here.

Tesco Bank

Tesco Bank offers unsecured loans with a minimum rate of 2.9% APR to 25.5% APR depending on your circumstance. According to calculations, if you were to borrow £5,000 and plan to pay it back in three years, you will probably be granted an interest rate of 3.4%. Given that, you will need to repay a total of £5,262.12.

To qualify for a personal loan with Tesco Bank, you must satisfy the following terms:

• You must be 18 to 74 years old.
• You must be fully – employed. Borrowers under probationary employment will not be approved.
• You must be a resident of the UK for at least three years.

Hitachi Personal Finance

Hitachi is another lending company that offers personal loans. The borrowing range starts at £2,500 and goes all the way to £25,000. If you apply today, you would find out within the day if your loan has been approved. Their minimum interest rate is 3.2% APR. The maximum rate is 35.9% APR. With all these benefits, it is no wonder that Hitachi has been voted in the UK as the Best Direct Loan Provider for the past 6 years.

If you were to borrow £5,000 and plan to pay it back in three years, you will probably be granted an interest rate of 3.5%. Given that, you will need to repay a total of £5,270.04.

To qualify for a personal loan with Hitachi, you must satisfy the following terms:

• You must be 21 years old. There is no maximum age. • You must have a monthly pension or permanent employment. • You must be a permanent UK resident and must have lived here for a year. • You must have a bank account and good credit history.

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Post Office

Post Office was a finalist for 2021 Personal Finance Provider of the year in the Moneyfacts Awards. They allow loans from £1,000 - £25,000 and you would know almost instantly if you qualify for a loan or not. Plus, the funds can be transferred to your account the day after approval.

Depending on the amount, you can choose to repay the loan from 1 to 7 years. If you want to pay back more per period, Post Office does not impose any charges. According to calculations, if you were to borrow £5,000 and plan to pay it back in three years, you will probably be granted an interest rate of 4.2%. Given that, you will need to repay a total of £5,324.03

To qualify for a personal loan with Tesco Bank, you must satisfy the following terms:

• You must be 18 to 70 years old.
• You must have permanent employment or be self-employed. The minimum salary should be £12,000 per year.
• You must be a permanent resident of the UK and live here for at least three years.
• You must have a UK-based bank account and good credit history.

AA Loans

AA offers personal loans that you can apply for online. They provide lower interest rates for their members. You can borrow any amount from £1,000 to £25,000 in increments of £100.

Depending on the amount, you can choose to repay the loan from 1 to 7 years. According to calculations, if you were to borrow £5,000 and plan to pay it back in three years, you will probably be granted an interest rate of 4.2% if you are not a member. Given that, you will need to repay a total of £5,323.68.

To qualify for a personal loan with AA, you must satisfy the following terms:

• You must be at least 21 years old. You have to be no older than 70 when your loan term ends.
• You must have permanent employment with a minimum salary of £12,000 per year.
• You must be a permanent resident of the UK and live here for at least three years.
• You must have a UK-based bank account and good credit history.
• You should not have a history of bankruptcy.

Final Thoughts

Getting a loan can be difficult because most lending companies and banks require that you have a good credit score. Based on the comparison, Hitachi is the lending company that provides the lowest APR so it should be the first one that you go to for loan inquiries.

The APR posted here is just an illustration to show you how much you may have to pay given the set amount. The interest rate and monthly payments will still be determined by the lending facility depending on your circumstance.