How to apply for bank loan online

Some banks give you the option to apply for a loan online and the application process is usually fast and simple, www.sainsburysbank.co.uk, has said

Rather than visiting a branch or speaking to the call centre, you can access the application online.  It means you can complete it at any time and go through it at your own pace. 

Here are a few tips before you start:

Check the eligibility criteria

Most providers will have a couple of basic requirements, which you need to meet before your application will be considered; so, start by checking these. 

The common criteria include: a permanent address; annual income above a certain amount; have a bank account; and age requirement, usually around 18. 

Excluded purposes

Also, look out for any excluded purposes.  Some providers may offer loans to help finance a car or a home improvement and may exclude other purposes such as investment.  You can usually find these next to the eligibility criteria.  It is a good idea to check if you meet the conditions before you apply. 

Get necessary information ready

Once you have checked the criteria and decided you want to go ahead and apply, gather all the documentation you need to help you answer all the questions. 

Security

You can check if the information you are providing is secure by looking for the padlock icon before the URL.  This tells you that any information being sent is encrypted.  If anyone wants to intercept the information, they will not be able to read it without the encryption code. 

For additional security, you can often be logged out of an application if you are inactive for a period of time.  Make sure you have all the information at hand and that you have enough time to complete it fully. 

When you are ready to start, you will be taken through the application question by question.  You will also be given an opportunity to check if all the information you have entered is correct before submitting. 

Will I get an instant decision? 

Some providers will give you an immediate decision when you reach the end of the application while others might take a few days.  You usually have some days to change your mind and decide if you don’t want to take the loan.  If you do change your mind, contact the provider directly. 

Your loan agreement

Once your loan has been approved, you will usually be sent a paper agreement to read, sign and return.  Once this is done, the money will be transferred into your chosen account.