How it works to apply for a private loan.

In this article, we will try to explain how it usually works when you submit a loan application for a private loan. Here we will focus on how it works if you wish to submit the application via the web. To apply for a loan at your bank branch is quite obvious how it works and there they will tell you everything you need to know before you do anything.

How we describe the process here is how it often works with the different lenders. We cannot guarantee that everyone uses the exact same method as the one we describe. But hopefully it will give you a good idea of ​​how it can work.



This is not really a step in the application process itself, but it is such an important part that we address this as well. The idea is that before submitting an application you should have done a good preliminary work. This work is about comparing lenders, their terms, etc. If you do not do this, you are at risk of paying more than you need.

Comparing interest rates and terms is a good and important first step. You can always check with your own bank but today there are many lenders to choose from and it is conceivable that you can get a lower interest rate if you look around a bit and look for good prices.

The more time you spend researching the market, the greater the chance that you will find the cheapest private loan and that you get a lender who has good terms and that you like. This is a step you can take before the application process begins.

Fill in the form


Once you have compared the lenders and found the one that suits you best, it is time to submit an application. What you do then is to browse their website and find the form they use to receive loan applications. How the forms are structured can vary but basically it is the same that you need to fill out.

The information you need to write there is partly basic facts about yourself such as what you are called, where you live, social security number, job situation, salary etc. Then you should also fill in the facts about the loan you are applying for and then it is the question of size, duration, etc.

What you fill out here will then the lender use to decide if you have enough credit worthiness to approve the application.

Preliminary decision


Once the lender has taken note of your information, they will make a decision whether or not they want to lend money to you. If they find that you have a sufficiently good finances, you will receive preliminary approval.

Decided they take, they base on the information you submit but above all on the credit check they take to check your financial situation. There they find things like income, debts, payment notes and other things that may be important to your finances.

When they have looked at your financial situation you are either refused to borrow or you are approved. If you are approved, you will receive a debt letter either sent to you by mail or a letter that you can print yourself. You should sign this and submit it to the lender.

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