How to Get a Personal Loan

To manage a personal loan at the terms and conditions you can afford is not always an easy task. Banks demand a healthy credit score and the various payday lenders charge exorbitant interest rates. Online peer to peer lending platforms have come as a respite in the unsecured consumer loan space. The peer to peer lending sites provide a quick, affordable and safe lending forum by offering you low loan rates and/or better loan terms. Another engaging feature of social lending is that the interest you pay benefits real people and not some impersonal financial institution. Some of them will cater to all credit grades (A* - E), albeit their rates might be higher for those with less than a perfect score in comparison to others.
However, there are a few guidelines to help you get a loan on competent rates and structured somewhat closer to your requirements on peer to peer lending websites.

Browse online for a good loan proposition: Go through the loan markets of various online social lending websites to view the current loan rates. This can probably fetch you better rate or terms, or both. Sometimes, smaller and newly established lending forums might give you a better deal for your money including a number of freebies and discounts as they are still in the process of building up their customer base.


Humanise your profile: Personalise your profile by adding your picture or writing your pen picture. It might help to lend an authenticity to your profile, based on community connections and not credit scores. You'll get better response from other users as a real person. Enhance your appeal as a worthy borrower by making your social profile more promising and reputable.


Check your credit situation: Your credit rating matters!! The first important step is to know your credit score. A good credit rating can probably fetch you a happy loan deal. If you have an unusually poor credit score, have a credible explanation ready for it. You might end up paying higher interest than someone with a good credit score but you could get your loan. Also, if you have managed to improve your credit score after a concerted effort, it will not cut any ice with banks. Here, social lending platforms might help you in getting a loan offer from lenders who understand that bad debts do not necessarily imply that the borrower has been financially irresponsible. Get your accounts in order and put yourself in a better bargaining position.


Take time to apply for the loan in detail: Give an adequate description of why you require this loan. Provide details of why you are a safe bet for lending money by establishing that you have the capacity to repay the loan. Your prospective lenders would like some concrete information about your past debt repayments, your approach to your financial obligations and so on. Play up factors such as stability and dependability in terms of your job, appointment, social status, social circle etc. The borrowers can even be endorsed by other community members on a loan listing on social lending marketplaces which encourage networking amongst their members.


There is more to a loan than just low APR: A lower loan APR could make a sizeable difference to your monthly financial budgeting. However give due consideration to other factors like duration of the loan and any upfront or hidden costs that might have to be borne by you. This can take away the happiness of a lower APR. Most Social lending platforms charge a onetime nominal fixed arrangement fee from borrowers.


Invite connections for social financial networking: Most social lending websites have special features to search for friends, family and work or business contacts on their websites. Browse and search for people and friends according to your interests. Your connections can use listing endorsements to recommend a worthy loan request to common friends.


Monitor progress on your listing: It gives you more time to deliberate on whether the loan listing is getting funded as per your desired rate of interest and whether you should go in for this loan. It will also give you an insight into the way lenders bid on a loan listing.


Reply responsibly to lenders' queries: Provide lucid and sincere answer to all investor queries to position your application in the best possible light. Your response might convince lenders out there that bad credit can happen to good, responsible people. Lack of adequate response to lenders' genuine queries can turn off prospective lenders from bidding on your loan listing.


Participate in relevant groups: Create different groups for your community and invite connections to fraternise through different groups. Read and participate in blogs to share relevant thoughts, information and trends on issues of common interest. Social networking lending & borrowing marketplaces provide a host of features such as Groups, Blogs, Connections, Alerts and Endorsements on their website to encourage such interaction amongst their members with the prime focus of facilitating financial transactional activities.


Establish good PR: Reciprocate by showing your regard and gratitude to the connections who have lent you money. Build up relationships on the social lending networks which will last beyond the immediate loan. Enhancing your social reputation on borrowing & lending networks can come in handy for a future loan for you or your connections.
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