Please help!!

Zain1234

Hello all and happy new year

Ok, so I want a loan of upto 7k-8k maximum and I want to repay it over 3-4 years with maximum 10% APR.

I am a undergraduate student and currently on my gap year and I am working full time with a monthly income of £1600-£1800 after tax.

I am a Natwest costumer and have ok credit rating I guess since I have never gone over draft and never borrowed any money before.

I have looked at a few deals and HSBC and Sainsbury seem the best option. HSBC have persoanl loans at 7.5% APR if I borrow over 7k and upto 25k.
Sainsbury have a similar offer.

So my question is what is the likelyhood of me being accepted for this loan with either Sainsbury or HSBC? If I am accepted how long before I get funds in my account? Also if anyone has any experience with this type of loan, please share your expertise.

Thank you for your help. Zain

zppp

How will you make the repayments on the loan, especially if you are on a gap year?

Zain1234

zppp wrote: »

How will you make the repayments on the loan, especially if you are on a gap year?

As I said I am working full time during this gap year, i will still be working full time until septermber this year meaning i can earn £1500 a month for the next 8 months. I will be making the repayments as i earn and I also have £2k saved so i can repay for the short term from those savings. The reason I am borrowing 7k and not 5k is because the APR goes up if you borrow less than 7k. This seems to be the case with all lenders.

zppp

Zain1234 wrote: »

As I said I am working full time during this gap year, i will still be working full time until septermber this year meaning i can earn £1500 a month for the next 8 months.

I think you missed my point. You are employed for your gap year, but you have 8 months of guaranteed income. What will your monthly income be after the 8 months is up?

Zain1234 wrote: »

I will be making the repayments as i earn and I also have £2k saved so i can repay for the short term from those savings. The reason I am borrowing 7k and not 5k is because the APR goes up if you borrow less than 7k. This seems to be the case with all lenders.

Keeping money back on the loan is not an acceptable form of income unfortunately. For a loan, you have to supply proof of income such as a contract of employment. If it is for a fixed period, it must be at least the length or duration of your loan. Most prime lenders start loan terms from 12 months upwards, and this is your problem.

CLAPTON

show us the maths of how you will repay

opinions4u

On the face of it, your proposal is bonkers and no lender will touch it.

You don't have a real job.

Zain1234

zppp wrote: »

I think you missed my point. You are employed for your gap year, but you have 8 months of guaranteed income. What will your monthly income be after the 8 months is up?

Thank you for your quick response and help appreciated

I will still be working part time with an extimated income of £1000 a month.

zppp wrote: »

Keeping money back on the loan is not an acceptable form of income unfortunately. For a loan, you have to supply proof of income such as a contract of employment. If it is for a fixed period, it must be at least the length or duration of your loan. Most prime lenders start loan terms from 12 months upwards, and this is your problem.

I am in a permenant contract and my employers will keep me as long as I want. I have worked there for 2 years and my job is safe for the forseeable future. My 2k savings are in the form of debt which my freinds have borrowed from me and they will give it to me on a short notice.
sorry i didn't quite get the bolded part of your paragraph.

thank you once again for your help

[Deleted User]

lack of credit history will kill this stone dead

Zain1234

CLAPTON wrote: »

show us the maths of how you will repay

Go over my posts and you will get it. I will repay from the money I earn.

opinions4u wrote: »

On the face of it, your proposal is bonkers and no lender will touch it.

You don't have a real job.

I don't know what you mean by a real job. I work for M&S and about to be promoted to managerial postion in the near future. Last timie I checked that was a real job
I have been working there for 2 years now.

kangy

If you have £2K of debts owing to you can I suggest you get this back? Because you might find that when you do need it you won't get it as quickly as you hope or think. Also - the interest rate might be less on loans over £7K but if you check how much you'll actually repay you might find it costs less to get the £2K from your friends and a £5K loan - not only that if you are borrowing less you could perhaps spread it over fewer years as you'll be able to afford more per month - and pay back even less.

Just a couple of thoughts!

Zain1234

kangy wrote: »

If you have £2K of debts owing to you can I suggest you get this back? Because you might find that when you do need it you won't get it as quickly as you hope or think. Also - the interest rate might be less on loans over £7K but if you check how much you'll actually repay you might find it costs less to get the £2K from your friends and a £5K loan - not only that if you are borrowing less you could perhaps spread it over fewer years as you'll be able to afford more per month - and pay back even less.

Just a couple of thoughts!

Thx for your input

I take your point, the £2k sum is basically sorted out and i will have it by the end of the week.
Can you direct me towards any lenders who lend £5k at low APR?