Who can get a bank loan

• You must have a proven history of good credit
• You must be earning sufficient income to prove you can repay the loan
• You must be a resident of the UK and usually need to provide 3 years of address history in the UK
• You will need to have a bank account
• In some cases you may need to hold a current account with the loan provider
• You generally must be 18 years of age or older

Process of getting a bank loan

Application online: Most banks have an online application form you to complete. This will usually take about 10-15 minutes to complete. Make sure you have all of your address details, bank details and employment details to hand as they will more than likely need this. Once you have completed and submitted the application form they usually give you an instant decision. If you are rejected, it is not advisable to apply to another good credit loan company for another 3 months.

If you are provisionally accepted, they will tell you then and send you an email confirming this. Bear in mind that a provisional acceptance is not the same as being accepted for the loan so do not make any purchases until the money is in your account.

After this, you may receive a phone call to confirm your provisional acceptance or you will receive the loan documents in the post within a couple of days. When you receive these documents, read through them very carefully (even reading the fine print). The documents will consist of the loan Terms & Conditions and the credit agreement. Once you have read through all of these, you will need to sign the credit agreement and send it back to the lender. If they request copies of other documents, make sure you include these when you send them back.

The lender will receive your documents and make a final decision on your loan based on the documents you provided and the credit check they carry out. If accepted for your loan, they will notify you of their final decision and the money will be transferred into your account within a few days.

What to consider with a bank loan

• How much the loan is ultimately going to cost you
• How much money do you actually need
• Whether it's a better idea just to save the money and not have the loan
• How good is my credit history
• Can I currently afford the repayments
• Am I at threat of losing my job

Who offers bank loans

You need to hold an account with the following banks to be able to apply:

Northern Bank, HSBC, First Direct, Halifax, Yorkshire, NatWest, Ulster Bank, Clydesdale, Lloyds TSB, Royal Bank of Scotland, Metro Bank

You don't need to hold an account with the following banks to be able to apply:

Barclays, Nationwide, Bank of Ireland, The Co-Operative Bank, Alliance & Leicester, Santander, Airdrie Savings Bank, Reliance Bank, First Trust Bank, Isle of Man Bank

Benefits of a bank loan

• Can be used for many reasons
• The interest rates are lower than other lenders
• You may have the option of repayment holidays or deferment of your loan
• You know you are borrowing from a reputable lender
• If you repay it back according to the terms, you can further build your credit rating
• Bank loans are almost always available
• They cost less than other financing sources
• They offer liberal repayment terms
• They enhance your relationship with your bank

Extra possible charges for a bank loan

Late payment – charge applied if you make a payment late on your loan

Pre-default notice – a notice informing you that if you miss another payment/s then your loan will go into default

Default fee – charge applied if you go into default on your loan

Arrears fee – charge applied if your loan goes into arrears

Early Settlement Fee – this is applicable if you wish to pay your loan off earlier than agreed in the term

Failed direct debit – if your repayment comes back due to a failed direct debit

Courier fee – enables you to receive your documents quicker via courier service

Order to gain new address – if you move house and don't inform them they are able to add this extra charge onto your loan

Letter requesting payment – charge you for every letter sent to you if you miss repayments

Phone call requesting payment – charge your for every phone call to you if you miss repayments

Issue of solicitors letters – if they have to contact a solicitor because your loan is referred to a solicitor they will charge you for this

Instruction of solicitor for court proceedings – if you fall so far into arrears with your loan that it is taken to court, they are able to charge you for the action with the solicitors

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