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Thursday, June 13, 2024

A Guide to Applying for a Loan & Choosing the Right Lender for You

Applying for a loan can seem like a difficult task, specially if it’s your first time. At the start, you may find yourself asking questions such as – how to apply for a loan, what do you need to apply for a loan and how to select a lender. To assist you with this, we’ve compiled a list of tips for applying for a loan that you may find useful.

Step 1: Decide How Much You Need to Borrow

First and foremost, you need to give some thought to the amount of funds that you should borrow. If you require funds for a specific purpose, consider the urgency of your need and then determine an amount that you can actually afford to borrow and later repay. Use a notebook & pen to jot down the details and figure out how much you need vs how much you can realistically borrow. Make sure to take your income, usual expenses and any debt into consideration when deciding on your amount. The last thing you want happening is to borrow a large sum of money and later find yourself incapable of paying it back.

Step 2: Check Your Credit Score

Another thing to keep in mind is your credit score. Your credit score will determine your eligibility to apply for a loan. Remember that having a bad score could ruin your chances of acquiring a loan, as most lenders typically run a credit check prior to issuing one – in order to check the likelihood of you paying your loan back. Therefore, you need to know if your credit rating is healthy and if it is not, you will need to take steps to improve your credit prior to applying for a loan.

Step 3: Select a Lender

Deciding your lender is an important step. With countless options currently available, you might find it difficult to decide on who is the right choice for you. Here are a few tips to help you decide:

Create a List of Potential Lenders

The first step that you need to do when trying to select a lender is to list down a number of potential loan providers that you are interested in. For this step, you may choose lenders who have been recommended to you by friends & family or lenders that you have personally heard of and have considered in the past. It is best to narrow down your options to around 5 to 6 lenders, as having too many options could make your decision-making process unnecessarily complicated.

Beware of Dubious Lenders & Potential Scams

The importance of this step cannot be stressed enough. There are numerous loan scam companies that are currently operating across the globe, who are trying to take advantage of people in difficult financial situations with false promises of quick money. Make sure to conduct thorough research on any lender that you consider, in order to determine whether the company is legitimate, licensed and registered. Always remember to golden rule – if it sounds too good to be true, it probably is!

Compare Loan Rates & Offerings

Once you have a list of options, you need to check and compare the offerings of each lender. Though low interest rates are tempting, you shouldn’t base your decision on just that factor alone. Make sure to take into consideration any monthly management fees and other added charges. You should opt for a rate that you are comfortable with, after considering your current situation and weighing your options.

Read the Fine Print

Make sure you go through your lender’s terms & conditions very thoroughly and ensure that you understand your obligations. Read through every line on the document provided by your lender – including the fine print – to see if you are aware of the conditions and that you are okay with all the terms that have been spelled out. Remember that if you agree, that you are legally bound to the terms outlined, so make sure to note down anything that you are not sure about and need clarified.

Ask Plenty of Questions

It is important to get any doubts that you have clarified by your lender, prior to deciding to proceed with your loan. You can ask your lender about any extra information that you want to know about such as how long it will take to process your loan, who will service your loan and what’s the best way that you can communicate with them.

Check Quality of Customer Service

You may also take into consideration the level of customer service being offered to you and how satisfied you are with their communication. Choose a lender who is able to answer your questions when you need them to and someone who is available to provide you the service you expect, on time.

Applying for a Loan with LoanMe

Having done the above steps and having decided that you want to proceed with LoanMe, applying for a loan is very simple. You simply need to visit our website on loanme.lk, fill in our online application form and submit it. If your application is approved, you will be notified via an SMS and receive your funds within minutes.

Anyone who is currently employed for at least 3 months and has a steady income is eligible to apply for a loan. We offer loans of up to Rs. 40,000 – with 0% interest or additional fees on your first loan – and also also offer customers the ability to make repayments online, for further convenience & ease.

Our agents are always at hand should you have any further queries or questions related to applying for a loan. Do reach out to us on +94117877555 or send us an email at [email protected] and our agents will get back to you as soon as possible!

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