(ThyBlackMan.com) Do you want to buy a property and are running short of money? There are several different types of loans you can apply for. If you are going to borrow a small loan, you may consider applying for a simple loan.
The concept of a simple loan is very similar to those offered by housing finance companies. Applying for it is also identical. Simple loans mortgage broker will help you with the procedure.
Simple loans are usually given in stages. A simple loan is a type of unsecured loan, meaning that you do not need to provide any collateral for the loan. A simple loan also offers a fixed repayment period, as short as one month or as long as 48 months.
How to Apply for a Simple Loan?
Steps to apply for a simple loan:
- Request for a quote – Before you apply for a simple loan, it is essential to determine the loan’s interest rate. When you know how much you will need to repay every month, go ahead and request quotes from different lending institutions.
- Go through your documents – Once your quotes are ready, you can consider which loan provider to choose. The next step is to check which documents you need to provide the lender with.
- Fill out a loan application form – Once you have all your documentation sorted, fill out a loan application form and attach photocopies of your passport, I/C, and driving license. Now deliver the application to the nearest branch of your selected lender. A simple loans mortgage broker can help you with the process.
- Wait for the response – According to data, the total amount of outstanding personal loans in Australia was more than $145.5 billion as of September 2020. Once your loan application has been processed, you should receive a written acknowledgment from the lender. The loan processing time may vary depending on the availability of funds and the urgency of your request. Once you receive it, you can ensure that your application will be processed within three business days.
- Get approval – Finally, you will get written notification of your loan approval, including the amount to be borrowed and the loan repayment schedule. You can then make arrangements regarding repayment based on the lender’s timeline. You will only need to undergo one credit check with a simple loan, and your application should be processed quickly.
Things to Know Before you Apply for Simple Loan
Loan Amount
The minimum loan amount you can borrow under a simple loan depends on your lender’s policy. You need to confirm the maximum amount you can borrow before submitting your loan application.
Interest Rate
A simple loan is an unsecured loan, which means that the lender is taking on more risk by lending you the money. The interest rate for a simple loan is usually higher than a housing finance company loan. Most lenders offer an interest rate of between 1 percent and 3 percent.
Loan Duration
The loan duration for a simple loan is usually fixed and ranges from one month to 48 months. It gives you the peace of mind of knowing exactly how much you need to repay every month and helps you budget your expenses.
Processing Time
Simple loans are processed quickly, with most lenders giving you a written acknowledgment within three business days.
Credit Check
Borrowers are usually not required to undergo a credit check when applying for a simple loan. It makes it easier to get the money you need without worrying about your credit history.
One downside of a simple loan is that the interest rate is usually higher than other types of loans. However, the fact that you are allowed to repay in stages also makes it easier for you to manage your expenses and avoid missing installment payments due to a lack of funds.
A simple loan is a quick and easy way to get the money you need to purchase your property. As long as you understand the terms and conditions of the loan, a simple loan can be an excellent option for those who want a hassle-free borrowing experience.
Staff Writer; Craig Barker
