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Thursday 13 August 2020
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What You Need to Apply for a Personal Loan

What You Need to Apply for a Personal Loan

Are you are dealing with a large, unexpected expense? Are you planning for a costly, once-in-a-lifetime event such as a wedding or dream vacation? If so, you may be considering taking out a personal loan through a bank or company such as Simple Path Financial. As part of your application, you will need to submit various documents to your chosen bank or company.

Verification of Identity

For legal and practical reasons, you will need to be able to prove that you are, in fact, who you claim to be. The institution that you are dealing with may ask you to provide a driver’s license, passport, or social security card in order to do so. In the United States, you must be at least eighteen years old and have a bank account in order to receive a personal loan. In many cases, you need to be a United States citizen as well. It is possible for non-citizens to take out a personal loan, but it is often more difficult for them to do so.

Proof of Address

The terms and conditions of your loan may vary based on where you live. You will need to provide a recent utility bill, voter registration documentation, lease agreement, or similar documentation in order to confirm your current place of residence. Some lenders may have additional questions related to your housing situation, such as whether you own or rent and how long you have lived at your current address.

Verification of Income

Your potential lender has a vested interest in determining whether you are likely to be able to pay off your loan. You are more likely to be approved for a personal loan if you have a consistent income each month. Documents which may serve to verify your income include bank statements, W-2 forms, and pay stubs.

As you research personal loan options, be sure to prepare the documentation that will accompany your loan application. It may be helpful to consult an accountant or financial adviser before submitting your application.