What happens when you apply for a loan? The Admiral Loans team has put together a simple, step-by-step guide explaining the process of applying for an unsecured personal loan
The process of applying for a personal loan can be a confusing one, but the more you prepare the easier the process of being approved should be.
Whether you want a loan for home improvements or a wedding, getting the right loan for your needs is essential. There are a few things you need to know before you apply for a loan, such as the amount you can afford to borrow, how much you can afford to repay and how long you want the loan for.
Follow our step-by-step guide to applying for a loan and learn everything you need to know.
1. Ask yourself how much you need to borrow
Start with a pen and paper (or a spreadsheet) and work out what you really need. You can use an Admiral unsecured personal loan for almost any purpose such as, buying a car, consolidating your existing debts, completing some home improvements or paying for your wedding for example.
If you're taking out a loan to finance some of the cost of your wedding, you may want to borrow a little extra just in case you find yourself faced with hidden costs or unexpected hiccups. If this means you end up borrowing more than you ultimately need, you can then repay some of the loan early without any penalties.
2. Think about what you can afford to borrow
Your loan application isn't likely to be accepted if you're asking for significantly more than you can comfortably afford to pay back based on your income.
As responsible lenders we check your ability to afford the repayments on the loan you've applied for. If you're aware of any changes to circumstances during the term of the loan which may impact your ability to maintain payments on your loan, you should let us know.
You need to consider your other commitments like rent or a mortgage, household bills and other essentials like food and transport as well as any other financial commitments you already have. Aiming to pay back £10,000 in 12 months while you're earning an annual salary of £20,000 is probably not realistic.
If you are interested in applying for a loan with Admiral, you can use our loan calculator to work out the ideal terms, playing around with the agreement length and the amount you're borrowing to strike the perfect balance for your situation. Only borrow as much as you need and can afford to pay back without leaving yourself short every month.
Representative APR 3.3% fixed
This rate applies for loans from £5,000 to £7,400. The rate offered will depend on the amount you wish to borrow and your individual circumstances.
Representative example: If you borrow £5,000 over 60 months at a Representative APR of 3.3% (fixed) and an annual interest rate of 3.3% you would pay£90.40 monthly and the total amount you would repay would be £5,424.
3. Complete the online application form
Once you've settled on what you need to borrow and over how long, you can start applying. Our simple-to-follow online application form takes around five minutes to fill out.
We ask some straightforward questions about your identity, employment status and income, plus a couple of questions about your other monthly commitments. Please be honest, the answers to these questions are used to check your ability to repay the loan.
4. Speak to a member of our team
If you'd prefer to go through this process over the phone, you can speak to one of our friendly agents who will be happy to help you by calling us on 0333 234 6007 (Opening hours: Monday-Friday 8am-8pm; Saturday 9am-5pm; Closed Sunday)
5. Requiring additional information
There may be occasions where we'll need additional documentation. We'll ask you to upload or post some documents, for example you may need to provide bank statements or other evidence of your income.
6. Processing and acceptance
After you press the button to complete the online form, your details will be subjected to a credit check. You'll then find out straight away if you've been accepted.
If you are making your application over the phone, the agent you speak to will confirm the decision after they've taken all your details.
You'll need to sign a credit agreement, which you can do online or get it sent out in the post if you prefer. This will give you the full terms and conditions and explanation of the loan. You should read all the documents within the contract pack before signing the loan agreement to ensure you're happy the loan meets your needs and financial situation. This explains, amongst other things, your rights to withdraw, how to settle your loan early, how to make a complaint and what happens if you miss a payment.
7. Receiving funds
Once we receive your signed agreement, you should see the money hitting your account within three to five working days. We will send you an email and a letter with a copy of the executed agreement which confirm the funds have been paid in and when your first payment will commence.
Keep an eye on your account to see when your loan arrives so you know exactly what money you've got available so you can make the necessary arrangements.
8. Starting repayments
You will be asked to specify when you want your payments to commence from. Repayments will be set to automatically start the following month on this date. Unfortunately we're not able to take your repayments every four weeks or the last Friday of the month, for example. You will need to specify a date.