What documents do they ask for? £10,000 personal loan

David555

I'd recommend getting a few insurance quotes in too before buying a car as it can be stupidly expensive if you're in your teens/early 20s having just passed your test. Chances are you will need another 5k+ loan just to insure it for a year!

When I was considering buying a cheap ish car at 18/19 I couldn't find any quotes for less than £5500 for a car worth around £3,000! Mental. Needless to say I never bothered.

meer53

Banks take a dim view of liars. Tell the truth and all will be well. What would you do if the bank do ask for proof of what the loan is for and you have lied ? They are quite within their rights to ask for this.

adindas

michaelmystery wrote: »

I'm looking at getting a personal loan of around £10,000 over 5 years.

I did the online soft check for Natwest and Zopa, and they both said I'm likely to be approved, with monthly payments of £200-£250 for both companies.

I have about £1,250 net of monthly income after taxes and all bills paid.

What I really want to know, is what documents are they going to ask for?

If I am saying this is for a car loan, will they ask for proof of my drivers license, or past driving history, or which particular car you want to get and why? Or do they just approve it so long as your payslips and ID matches up.

Same with something like, a home improvement loan. Do they ask for proof that you are a homeowner, with a mortgage? Or do they just approve it?

I am really interested in the kinds of documents that they ask for.

I just want as many people to respond to this thread as possible, so I can get as many people's experiences as possible.

State why you got the loan and what documents they asked for.

Thanks

michaelmystery wrote: »

Out of interest, what is the most likely way to get approved for a £10,000 loan?

You say that they assume you could sell the car to pay back some of the loan?

What about the other common reasons.

Zopa lists the following reasons...

Car
Home improvements
Debt consolidation
Credit cards
Boat
Business
Caravan
Christmas expenses
Electronic goods
Holiday
Holiday home
House deposit
Jewellery
Land purchase
Motorbike
Pay off relative or friend
Repairs
Stocks and shares
School fees
Solar panels
Tax bill
Wedding expenses
Other

Do not feed the trolls. Let them die malnourished

ReadingTim

meer53 wrote: »

Banks take a dim view of liars. Tell the truth and all will be well. What would you do if the bank do ask for proof of what the loan is for and you have lied ? They are quite within their rights to ask for this.

Actually, what they're "within their rights" to do is set out in their terms and conditions. Here's an example from HSBC. As you can see, there's nothing about "proof", only that they can close the account if they "reasonably suspect fraud or other criminal activity".

Keep up the repayments on a loan that's affordable, and you're unlikely to give them any cause for suspicion, let alone a reasonable one. Consequently, whilst I don't disagree with the premise that you should be honest on your application; I must conclude that the parrot-fashion line "don't lie, you'll get caught", has as much accuracy as the fabled "TV license detector van"...

cj1974cr

There is no reason to question it

[Deleted User]

ReadingTim wrote: »

I would imagine that the only time they'd be concerned is if you default and they're looking to get some of their money back - for example by seizing the car.

They couldn't seize the car, because the car is yours, assuming, of course, that it is indeed an unsecured loan.

[Deleted User]

David555 wrote: »

When I was considering buying a cheap ish car at 18/19 I couldn't find any quotes for less than £5500 for a car worth around £3,000! Mental.

Not mental at all.

Paying out on a stolen/burned out £3,000 car is nothing to an insurance company.

The big bucks (and hence the reason for massively high premiums) is paying out for that 3rd party's Rolls Royce you just wrote off, and the driver you put in a wheelchair for life.

Vikipollard

michaelmystery wrote: »

And what if I am buying this car for myself, but I don't currently have a drivers license or any history of paying car insurance?

Because that's really what I'm trying to do here.

I plan to get my license, but haven't yet got it.

Why on earth aren't you just saving up the £1250 you say you have after bills are paid pending passing your test? Let's say it takes you six months, you've got £7500 saved.

£2,500 is MORE THAN ENOUGH to spend on your first car as despite whatever you may think, you don't have a clue how to drive, and you'll only just start learning properly then.

That leaves you with £5,000 for the eye-watering insurance you will need to pay. You will have no debt, and you will be in the habit of saving money for next year's insurance and MOT.

You don't NEED a car yet...you WANT one. Don't be a fool and get into debt for 100% of b***er all when there are no guarantees how long it will be before you can actually drive the car.