Am I eligible for a loan?
One of the first things to establish is whether or not a lender is likely to offer you the money you want to borrow.
All banks and lenders have loan eligibility requirements to meet before you start an application. For example, to be eligible for a loan with us, you must:
- Be at least 18 years old and no older than 83 when the loan is repaid
- Have a phone number
- Be in permanent paid employment, self-employed or retired with a pension
- Have a gross annual income of over £7,500
- Be a UK resident (excluding the Channel Islands and the Isle of Man)
- Not have a history of County Court Judgements or bankruptcy
You should also note that there is usually a range of exclusions, covering things that you won’t be able to use a personal loan for.
What do I need when applying for a loan online?
If you want to apply online, make sure you have the following information to hand:
- Details of your monthly income and spending
- Your residential address for the last three years
- The address of your employer
- Details of any other credit you have including other loans, credit cards and store cards
- The account number and sort code of the account you’d like your loan paid in to
- To get access to Nectar rates, you must be a Nectar member - when you apply, remember to give your Nectar card number if you have one
We may ask you to provide proof of your identity. For this you’ll need a passport or a driving license, and/or a bank statement or utility bill. You’ll also need a mobile phone with a working camera, to take a selfie as part of these checks.
Things to consider before applying
Need help deciding if a personal loan is right for you? We’ve answered some of the most common questions our customers ask about taking out loans and the best ways to borrow money responsibly.
Is a loan the right choice?
Loans can be a great way of borrowing money quickly, whether it's to complete a home improvement job or pay for your dream wedding.
That said, there are other ways to finance big buys and events, so you may not need to apply for a loan. For example, you could set yourself a saving goal and put money aside each month. Or you could explore other borrowing options with your bank and their competitors.
The best time to apply for a loan depends on your personal circumstances. If you’ve had recent issues with bad debt, borrowing might not be the right choice until you’ve had a chance to rebuild your credit score. Make sure to review your monthly expenses and think carefully about how your financial circumstances may change in the future as well.
How much money should I borrow?
You should always consider whether borrowing money is affordable for you. Use our loan calculator to get an idea of the total amount repayable, as well as the monthly payments you’d need to cover. This won’t affect your credit score.
The highest personal loan we offer is £40,000 for Nectar members and £25,000 for non-Nectar members. You can also increase your personal loan with Sainsbury’s bank if your current total borrowings are less than £40,000.
See our banded loan pages for the total repayable amount, representative APR rate and monthly repayments. Note that credit is subject to status. And the rate you may be offered will depend on your personal circumstances, credit assessment procedures and other related factors.
You can also make loan overpayments and pay off your loan early. This could save you money in the long run but watch out for early repayment charges. Contact your provider to find out more.
Is it safe to apply for a loan online?
Yes, applying for a loan online is safe. Most lenders give you the option to revisit an online application that you haven’t submitted yet, completing it at your own pace.
Check that your information is secure by looking for the padlock icon before the URL. This shows that the information on the page is encrypted. If anyone were to intercept the information, they wouldn’t be able to read it without the encryption code.
Often when applying for a loan online, you’ll be logged out if you’re inactive for a while. This is an additional security measure.
Can I only take out a loan with my current bank?
No, you don’t have to take out a loan with a bank or building society where you’re already a customer. You can shop around and find the right match for your borrowing needs.
You can have multiple personal loans at once, but this may negatively impact your credit score and lead to financial difficulty.
When shopping around for the best type of loan for you, compare the representative APR, look out for any initial set-up costs and check potential penalties for missed or late payments. Another thing to look out for is early repayment options.
Interest rates for different types of loans
The representative APR (annual percentage rate) allows you to compare different types of loans from various providers. The lower the APR, the less interest you’ll pay.
Bear in mind that the actual rate offered to you will depend on your personal circumstances, credit history and other related factors. At least 51% of customers who receive a loan will get it at the advertised representative APR.
Understanding and checking credit scores
A credit score is used by lenders to assess the likelihood of a person's ability to repay their debts. This will influence whether your loan application is successful. Your provider will also use credit information to work out what interest rate to offer on a bank loan.
You’re more likely to get accepted for a personal loan if you have a good credit history. While you can get a loan with a bad credit score, your options may be more limited and interest rates are often higher. You can check your credit rating before you apply for a loan to give you a better idea of what to expect and to correct any errors in your records.
Applying for and being refused multiple loans at once (or in a short space of time) can signal financial trouble and negatively impact your credit score. So, it’s best to only apply for loans you believe you're likely to qualify for, based on your circumstances. For more information, read our guide to managing and improving your credit score.
Will I get an instant decision?
Some lenders will give you an immediate decision when you reach the end of the application, while others might take a few days.
What happens if I can’t pay back my loan?
If you need a short-term break from your loan, your provider might be prepared to put your personal loan repayments on hold for a bit – but this will extend your loan term.
You should be aware that there could be serious financial consequences if you don’t pay back your personal loan. To start with, you’ll most likely be charged a fee plus interest on any missed payments. Your credit score could also take a serious hit. And if you default on a secured loan, you risk losing any belongings or properties listed as security.
For more information, check out our guide on what to do if you are worried about defaulting on loan repayments.
How to apply for a loan
Here’s how you can apply for a loan online and begin your application.
Find out if your loan application may be successful
A loan isn’t suitable for everyone, and some people’s applications might not be successful. Find out if you are likely to be accepted for a loan before you apply by performing a soft search. A soft credit check gives you an idea of your eligibility for a loan without affecting your credit score.
Use a loan calculator before applying
Applying for a loan online is only half the journey. It’s important to use a loan calculator beforehand.
This can help to let you know what your monthly payments could be and how much you may need to pay back in full. A loan calculator estimates the annual interest rate, annual percentage rate (APR) – which is the total cost of your borrowing over a year – and more.
With a loan calculator, you can get an idea of how much you will need to pay back if your loan application is successful. It may also help you decide if a loan is right for you.
Start your application online
If you’re happy to proceed with your application, you’ll be given the chance to read through a few things to consider before starting.
This may include:
- What the lender doesn’t offer loans for
- How to get support with your application
- How you may be contacted by the lender about your loan
- What to do if you have a change of circumstance during your loan agreement
- Eligibility criteria you need to be aware of before starting
- What to have to hand before starting your application
Submit your personal details
You’ll normally be asked to submit your personal information to start with. This can include your:
- Date of birth
- Email address
- Mobile number
- Purpose of your loan
- Current address
You’ll then be prompted to fill in information about your current circumstances, such as your:
Number of co-dependents
Residential and employment status
Occupation and employer name
Provide financial information
Lenders will then ask for information about your income and monthly outgoings. This can include details about your gross annual income and any monthly mortgage or rental payments.
You’ll then need to provide your banking details. This may include your account number, sort code and when you opened the account you would like your loan money paid into, if your application is successful.
At this point, you’ll have the chance to check all the information you’ve entered is correct before submitting your application to the lender.
What happens after I apply?
Once you’ve submitted your application, there are a few things that can happen before you get a decision from the lender.
When applying for a loan online, the lender decides if you’re suitable based on the following information:
- Your application details
- Your credit report
- The lender’s own criteria
Lenders use a credit reference agency to work out your credit score. The higher your score is, the better your chances could be of being approved for a loan.
If you’re accepted for a loan, the lender will explain the terms and the interest rate they’re willing to offer you.
Will I get an instant decision?
Some providers may give you an immediate decision when you reach the end of the application, while others might take a few days.
You usually have 14 days to change your mind and decide you don’t want to take the loan. If you do change your mind, contact the provider directly.
When will money appear in my account if I’m successful?
If your online loan application is successful, the time it takes for money to enter your account depends on a few factors, including:
- The type of loan you’ve been approved for
- Which lender you’re using
- If you’re an existing customer
Some lenders may be able to transfer you money on the same day, while others may take a week or more.
With Sainsbury’s Bank, you will receive your loan amount once the Loan Agreement has been signed by both you and us, and all checks have been completed. You could get your money in as little as 2 hours, or the next business day, if you’ve been accepted.
Looking for more information? We have a range of helpful loans tools and guides.
How to get a loan through a bank? ›
- Check whether you qualify for a bank loan. Before applying for a bank loan, you'll want to know whether you qualify. ...
- Compare rates on bank loans. ...
- Submit your application for a bank loan. ...
- Review the loan agreement. ...
- Receive your funds.
The easiest banks to get a personal loan from are USAA and Wells Fargo. USAA does not disclose a minimum credit score requirement, but their website indicates that they consider people with scores below the fair credit range (below 640).Is it hard to get a loan through a bank? ›
Getting a personal loan can be a relatively simple process, but to qualify, lenders usually require information about your credit history, income, employment status and current debt obligations. Your income needs to be high enough to cover the loan repayment amount and your other monthly expenses.Can I ask my bank for a loan? ›
The loan application process is easy to start: Simply tell the lender you want to borrow money, and tell them what you're going to do with the funds (if required). They will explain the next steps and how long the process will take.How fast can I get a loan from a bank? ›
If you are approved, funding generally takes between two to five business days. Smaller banks and credit unions may take longer, but most should be able to fund your loan within a week of applying if you opt for direct deposit into a bank account.What credit score do you need for a bank loan? ›
Generally, borrowers need a credit score of at least 610 to 640 to even qualify for a personal loan. To qualify for a lender's lowest interest rate, borrowers typically need a score of at least 690.Do banks give personal loans? ›
You can generally find personal loan offers from banks, credit unions and online lenders. If you've been a longtime account holder with your bank or credit union, consider checking there first.What makes it hard to get a loan? ›
Some common reasons for having a loan denied include a low credit score, a high debt-to-income (DTI) ratio or insufficient income. So if you need a loan but keep getting declined, read on for a look at seven possible reasons you could be rejected for a loan, followed by six tips on what to do about it.How hard is it to get a $5,000 loan from a bank? ›
You will likely need a credit score of 600 or above to qualify for a $5,000 personal loan. Most lenders that offer personal loans of $5,000 or more require bad credit or better for approval, along with enough income to afford the monthly payments.Do bank loans hurt your credit? ›
And much like with any other loan, mortgage, or credit card application, applying for a personal loan can cause a slight dip in your credit score. This is because lenders will run a hard inquiry on your credit, and every time a hard inquiry is pulled, it shows up on your credit report and your score drops a bit.
How many loans will a bank give you? ›
You can have as many personal loans as you want, provided your lenders approve them. They'll consider factors including how you are repaying your current loan(s), debt-to-income ratio and credit scores.Can a bank refuse to give you a loan? ›
When your income is not incommensurate with what the bank is comfortable with, banks will refuse to lend to you. If you have been refused a loan, find out if the bank thinks your income is not good enough. Bad credit rating: A bad credit rating is often the most common reason for a bank to refuse a loan.Can I walk in to bank for loan? ›
Walk into a branch - When in doubt, you can always just walk into your chosen bank branch and ask about loan applications. Usually, these banks aim to provide customers with fast approval loans that require little documentation. If in doubt, check the bank website or give the customer service center a call.Can I ask my bank for a $1,000 loan? ›
Banks and credit unions
But you may also be able to get a $1,000 personal loan by walking into a traditional financial institution, like a bank or credit union, and applying in person. If you're an existing customer with a particular bank, you might be eligible for an interest rate discount.
The easiest loans to get approved for are payday loans, car title loans, pawnshop loans and personal loans with no credit check. These types of loans offer quick funding and have minimal requirements, so they're available to people with bad credit. They're also very expensive in most cases.Can you get a loan from the bank in one day? ›
If you take out a same-day loan, you may be able to access the money in your bank account as early as the same day you apply. But as with other personal loans, same-day loans may come with fees, such as origination fees, and you can expect to pay interest on the amount you borrow.Where can I borrow money? ›
- Credit Unions.
- Peer-to-Peer Lending (P2P)
- 401(k) Plans.
- Credit Cards.
- Margin Accounts.
- Public Agencies.
- Finance Companies.
You can get a personal loan with a credit score of 500 if you have a steady source of income, but your choices are very limited. The best way to get a personal loan with a 500 credit score is to start by checking to see if you pre-qualify for loans from major lenders.How much would payments be on a $50 000 loan? ›
How much would a monthly payment be on a $50,000 personal loan? If you take a $50,000 personal loan at a 6.99% interest rate and a 12-year repayment term your monthly payment should be around $462.Will a bank give you a loan with 600 credit score? ›
Yes, you can get a personal loan with a 600 credit score — there are even lenders that specialize in offering fair credit personal loans. But keep in mind that if you have a credit score between 580 and 669, you'll generally be considered a “subprime” borrower — meaning lenders might see you as a more risky investment.
How much would a $5000 personal loan cost a month? ›
Based on the OneMain personal loan calculator, a $5,000 loan with a 25% APR and a 60-month term length would be $147 per month. The loan terms you receive will depend on your credit profile, including credit history, income, debts and if you secure it with collateral like a car or truck.What do you say when asking for a loan? ›
- How you plan to use the money.
- The amount of money you are requesting.
- Your desired loan terms.
- How you plan to pay back your loan.
- And collateral to be used.
Not every bank offers personal loans. Some, like American Express, offer personal loans only to current customers who receive preapproval.What gets you denied for a loan? ›
The most common reasons for rejection include a low credit score or bad credit history, a high debt-to-income ratio, unstable employment history, too low of income for the desired loan amount, or missing important information or paperwork within your application.How long does it take to get a loan? ›
Banks and credit unions: Expect to receive your funds in one to five business days when applying for a loan at either a bank or a credit union. Online lenders: Online banks tend to be the fastest when providing personal loan funds, with some issuing money within the same business day as application.How to borrow money when you are broke? ›
Using a credit card, getting a payday alternative loan from a credit union, or borrowing from family or friends are all options if you're not able to get cash through a personal loan. These options aren't perfect: Credit cards can have high interest rates, and getting loans from family can be risky.How much is a $10,000 loan for 5 years? ›
Example 1: A $10,000 loan with a 5-year term at 13% Annual Percentage Rate (APR) would be repayable in 60 monthly installments of $228 each.Can you take out a $10,000 dollar loan? ›
You can find a $10,000 personal loan through a traditional bank, credit union or online lender. Depending on where you apply, it's possible to receive a quick decision and get funded in one to two business days. Some lenders also offer same-day funding to borrowers who need fast cash.Can I borrow 100k from the bank? ›
You can secure a $100,000 personal loan from a traditional bank or credit union and may have a better chance of being approved for a loan of this size if you already have a relationship with a bank. Online lenders are also a viable option.Is it bad to pay off a loan early? ›
Paying off the loan early can put you in a situation where you must pay a prepayment penalty, potentially undoing any money you'd save on interest, and it can also impact your credit history.
Do loans raise your credit score? ›
When paid off consistently, personal loans can increase and maintain your credit score through building a positive repayment history and diversifying your credit mix. While this may be helpful for some, keep in mind that it's not the best option for everyone.What is a good credit score? ›
Although ranges vary depending on the credit scoring model, generally credit scores from 580 to 669 are considered fair; 670 to 739 are considered good; 740 to 799 are considered very good; and 800 and up are considered excellent.How do banks determine how much to loan you? ›
In determining an applicant's maximum loan amount, lenders consider debt-to-income ratio, credit score, credit history, and financial profile.How do banks determine how much you can borrow? ›
Most lenders base their home loan qualification on both your total monthly gross income and your monthly expenses. These monthly expenses include property taxes, PMI, association dues, insurance, and credit card payments.Can I use a loan to pay off another loan? ›
Consumers often use personal loans for debt consolidation, which involves getting a loan and using it to pay off existing debt from other sources. The right personal loan can help you simplify your monthly bill paying and may save money in the long run—and that's exactly why you might choose debt consolidation.What is the best way to borrow money from a bank? ›
- Personal loan from a bank or credit union. Banks or credit unions typically offer the lowest annual percentage rates, or total cost of borrowing, for personal loans. ...
- 0% APR credit card. ...
- Buy now, pay later. ...
- 401(k) loan. ...
- Personal line of credit.
Generally, borrowers need a credit score of at least 610 to 640 to even qualify for a personal loan. To qualify for a lender's lowest interest rate, borrowers typically need a score of at least 690.Can I borrow $1000 from my bank? ›
Yes, $1,000 personal loans exist and are accessible for most types of borrowers. Since this is a smaller loan amount, you may not need excellent credit to qualify. If you need to borrow $1,000 for a few weeks, you may be able to charge it to a credit card and pay the balance before your next statement.What are 3 ways to borrow money? ›
- Personal loans.
- Home credit (Doorstep loans)
- Payday loans.
- Credit brokers.
- Student loans.
- View all.
You can generally use a personal loan for almost anything, including a wedding, a vacation, a medical bill, an emergency circumstance and more.
Will a bank approve a loan with no credit? ›
Yes, it is possible to get a loan with no credit or bad credit, but lenders will likely charge you a higher interest rate than if you had established credit history.