Unsecured loans are loans made to individuals which do not require any form of collateral since the credit quality and financial position of the individual is sufficient for the lender to extend credit without collateral. Most lenders limit the size of the unsecured loans to less than £15,000 or £25,000 without special credit approval.

Once you have decided to apply for a loan, it is important to ensure that the applications process is not more stressful than it has to be. Many of these pointers might seem obvious but following them will ensure that the application process goes as smooth as possible.

1. Personal Information - Fill in the application completely and correctly. Ensure that your answers are as accurate as possible. Even if you already have several accounts at the bank where you are applying for a mortgage or secured loan, it is important to complete the personal information completely since your application will be processed by someone not familiar with your history at the bank. Pay particular attention to providing accurate phone numbers with STD codes, post codes and account numbers. While tedious this will allow the bank to process your application quickly and accurately.
   
   
2. Signing and Dating - Ensure that you sign and date all the forms where indicated. If you miss even one place which requires a signature, your application will be delayed while the lender sends the forms back to you for signature.
   
   
3. Documentation - Provide all the records requested by the lender completely with your application. This will ensure that the lender has all the information needed to evaluate your loan request as soon as they receive your application.
   
   
4. Proof of Identity - Since September 11th, tighter money laundering restrictions have increased the requirements on banks and building societies to authenticate your identity before lending you money. To accomplish this, you might be asked to provide a passport, driving license, marriage certificate or a birth certificate.
   
   
5. Pay the Application Fee - Ensure that you pay the application fee and don't forget about to ensure that there are sufficient funds in your bank to cover the cheque. Remember you are asking a lender to loan you money on the promise that you can repay it. Make a good first impression by ensuring that you cheque clears the bank with no problem.

Personal Loans