10 Personal Loan Requirements You Need to Know Before Applying

5) Collateral

In order to qualify for a personal loan, borrowers must put up collateral. It can be any type of property (your house, car, motorcycle or even your family heirlooms) that has value. Once you’ve used it as collateral for your loan, you won’t be able to sell it or remove it from your home until you pay off your loan. Borrowers should therefore use valuable items that they don’t mind having attached as a guarantee for their debt.

6) Other Repayment Options?

If your credit isn’t great and you can’t get a personal loan from a bank, consider an alternative lender. These companies tend to charge higher interest rates but will work with borrowers who don’t qualify for traditional loans. Online lenders are generally easier to apply with, especially if you have less-than-stellar credit or a smaller income. If you opt for an online lender, make sure you do some research and choose one that has been around for at least three years.