Most of the time people find it very difficult to convince the banks for a loan, when they are self-employed or have a low income. It is also the case for people with bad credits. It becomes increasingly difficult when you have to convince them for a fast transaction. The problem is not that you would not be able to pay up but the paper work needed for sanctioning a loan is not always satisfactory with above mentioned people. For an unemployed individual it is worse as not getting a loan on time means that go deeper and deeper into credits while they have no way of paying it back.
Fast loans come very handy in these cases though as earlier mentioned they are pretty tough to acquire.
However there are ways of convincing the lender and also of getting it done quickly. The ways are different for different situations though. In case of people with a steady income but no fixed salary statement it is suggested that they go for a self-declaration of income. You can have a bank statement or an accountant’s letter to support your declaration and none of these two are very hard to get. It would be easier if you have something to offer as collateral as it reduces the risk factor for the lender.
Actually borrowers who can afford to offer houses or cars as collateral are pretty much assured of getting a loan sanctioned. This also brings down the interest rates with flexible payback time. Offering collateral is always a good idea if you are confident enough that you would be able to pay back the loan.
Another good trick of applying for a fast loan is to go for unconventional sources like online lenders. These people are more flexible than the traditional lenders and while you are choosing online you have the freedom to choose from a variety of offers laid out in front of you where you get to choose the loan arrangement that you are most comfortable with, not to mention that online applications are easier to fill out and require less documentation.
You also have the option of going for an unsecured loan but these are high interest loans where the time limit might also not suit. Though this is not very advisable as the borrower might end up in soup due to some mistaken arrangement, this is definitely a way of getting fast cash.
If you are a borrower with bad credit then you are in for a little more hard work than the rest of them. What actually counts in a bad credit loan is the debt-to-income ratio which should 40:60 which means that only 40% of the income can be used to pay back the loan. However if you can commit 40% of your income to the repayment of the loan then fast loan can expected to be approved. A running bank account is an absolute necessity as that shows your monitory transactions which can evaluated based on which the loan approval can be decided.
Written by Russell John who is working on short term lending and he has been writing articles on various classes such as technology and health. He is much interested towards short term finance articles and looking forward to write more articles on loan category.
