What Do I Need to Apply for a Personal Loan?

Although there are no precise guidelines for personal loans, most lenders use similar factors and requirements for a personal loan.

So, what do I need to apply for a personal loan? Before applying, make sure you gather all the required information available for your loan application to be assessed. This may include:

• Your employment details
• Your credit history and credit score
• Your income and expenses

Lenders will assess your credit score and history, income, debt-to-income ratio, and available collateral (if applying for a secured loan).

Although it’s not always a requirement, some lenders may require a personal loan origination fee to cover the cost of your application and assessment. These fees usually range between 1-8% of the total loan amount.

Typical loan application documents you’ll need include proof of identity, employer verification, and proof of address.

You can also do a pre-qualification to determine whether you are likely to be approved. This can be done without harming your credit score. If your credit score is not good enough, you can work on improving it first before applying again.