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How to apply for a UK loan

Before borrowers apply for a UK loan they must first know how to qualify for lending in the UK. The average lender will not lend money to people under the age of 18 as well as those who are not legal residents of the UK. Lenders need to make sure that applicants are old enough to enter into a legal contract and are settled in the UK. People who have ties in the UK are less likely to take out a loan and head overseas without paying it off. However it is important to note that some loan companies are willing to lend money to foreigners.

In order to apply for a loan in the UK the loan applicant must contact a lender and complete an application form. Generally most borrowers will approach their bank first. Those who do not get a loan approved with their local bank often turn to finance companies and payday loan lenders.

During the application process, borrowers will need to inform lenders of their financial situation. This will mean disclosing personal details such as their name, date of birth, marital status, income and employment information. If this information is satisfactory the lender will perform a credit check on the applicant. Those who have a good income, good credit and low debt levels will generally be approved for a loan straight away. Those who do not have an ideal application will either have their application declined or be required to provide further information to the lender. Once a loan is approved it is usually paid out within a day or two.

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