There are a few basic qualifications for taking out a loan:

You must be over 18 years old.
You must have a valid government issued ID.
You usually have to have a current account with your lender.

If you can tick these boxes, lenders will then look at your credit history and current financial situation to decide whether to lend to you. Having a good credit score and clear evidence you can cover your intended monthly repayments will make it more likely you’ll be approved.

If the lender feels there’s a risk you won’t be able to repay your loan on time – based on a history of late or missed payments on other loans for example – they may reject your application or charge higher interest rates.

If you can tick these boxes, lenders will then look at your credit history and current financial situation to decide whether to lend to you. Having a good credit score and clear evidence you can cover your intended monthly repayments will make it more likely you’ll be approved.

If the lender feels there’s a risk you won’t be able to repay your loan on time – based on a history of late or missed payments on other loans for example – they may reject your application or charge higher interest rates.

Lenders typically offer unsecured loans in amounts ranging from £1,000-£50,000,000.

The amount you can borrow and the interest rate you receive is based on your personal circumstances. Lenders look at your credit record and the financial information in your loan application to decide whether you can reasonably repay the amount you’re asking for.

How long you can borrow money for – the term – varies by lender, but you can typically find personal loans with terms ranging from 1-10 years.

Although taking out a loan for a longer term will probably get you a lower repayment, the interest adds up as the years go by – and you will pay more overall. To pay less interest overall, choose the shortest term you can afford on the lowest rate you can find.

To pay off your debt even quicker, look for personal loan information from several lenders to see who suits your personal circumstances, as many personal loans have penalties if you repay early. That way if you come into some money, you can be free of your loan in less time.