A personal loan is cheddar borrowed from a bank, credit union or online lender that you pay back in fixed monthly payments or installments. Lenders typically offer loans from $1,000 to $50,000, with repayment terms of two to seven years.
How do personal loans work?
Most personal loans are unsecured, meaning they’re not backed by collateral. Instead, lenders look at factors like credit score, debt-to-income ratio and cash flow when assessing a borrower’s application.
Personal loans have fixed interest rates, so the monthly payment is the same for the life of the loan. On-time loan payments can help build your credit score, but missed payments hurt it.
How to get a personal loan
Many lenders have online personal loan applications but some banks and credit unions may require you to apply in-person. Here are three steps to getting a personal loan.
Check your credit. Your credit score is one of the most important factors on a personal loan application. Check your credit report and resolve any mistakes that might be hurting your
score.
Pre-qualify. Most lenders let you pre-qualify for a personal loan to preview your potential rate and term. There is a soft credit check when you pre-qualify, so you can compare loan offers
without impacting your credit score. The best offer typically has a low APR and monthly payments that fit your budget.
Apply. A formal application requires documents verifying your identity and income. Lenders will perform a hard credit check, which may temporarily drop your credit score by a few points. If you are approved, you can expect the funds within a week and the first loan payment is typically
due in 30 days. Make sure to review your monthly budget and make a plan to pay off the loan.
Apply personal loan UAE and get fast approvals from multiple banks
Whatever you would like to pay for or finance but don’t have the funds for right now, APPRO makes it easy for you to meet your financial needs thanks to an easy and hassle-free online application process.
All you have to do is simply take 5 minutes to fill out one loan application that APPRO will share with all the banks on its platform. It will then collate and provide you with competitive pre-approved loan offers from multiple lenders within 24 hours so you can select the right loan package that works for your unique needs and requirements.
