Filling out an online loan application is relatively simple. Most loan applications from online lending platforms ask for the same information with the goal of determining whether you are financially stable and responsible.1
Few tips to help complete your online loan application include:
1. Provide your personal information
It is important that you provide your personal information and make sure that the information provided is correct. The purpose of asking for your personal information by the lender is because they are looking to see if you have a stable residence and if you are who you claim you are. Information that you will typically provide include:
- Name — Last, first, middle, surname, and maiden name.
- Address including city, state, and zip code
- Phone numbers — Primary and secondary numbers.
- Functional Email address
- Your BVN (Bank Verification Number) is mandatory to secure credit. The number will be used for identification purposes and to obtain your credit history.
2. Business Details and Employment History
The type of loan you are applying for will determine whether you provide your business details or your employment details, You could apply for a business loan or a personal loan.
Personal Loan: If you are currently unemployed, your application will probably be rejected. A solid employment history demonstrates that you are responsible and have the ability to make payments. The longer you have been at the same job, the better. The application will ask for the:
- Name of your employer
- Your position
- Length of employment — Start date
- Current salary
- Employment status — Probation, Contract, Part-time, Full time etc.
Business Loan: Business loans help to cover expenses or urgent cash needs for small businesses in cases where there is a need for extra funding or a loan to carry out business activities. Most financial institutions that give business loans will definitely ask for:
- The type of business you are into — Education, Trade and Service etc.
- Address and phone number of business
- Business Registration documents
- Company Account statement (tenure required varies with individual institutions)
- Copies of Sales/Purchase invoices (optional)
- Other necessary documents as requested by the lender
3. Review the credit agreement before completing the application
The credit agreement is often required before the borrower can use the funds from the lender.2 It outlines the terms and conditions to the borrower as required by the law, and explains the binding agreement between both parties.
You have to make sure that you pay attention to the Interest Rate (IR) and the late penalty charges (i.e. the amount you pay if you make a late payment). If you are not clear about any of the terms or conditions, contact the customer care for further clarification or inquiries before you start filling out the application.
4. Submit the form
Review the application and correct any errors or omissions, date your application, confirm the information you gave is correct and submit the application.
5. Wait for an answer
The two outcomes for your application are either accepted or rejected. If everything checks out, your application will be accepted and you will receive your money. If your application has been rejected, read the rejection letter to determine the reason(s). Common reasons for rejection are:
- You made a mistake on your application.
- There is a problem with your work history or financial information. If you have changed jobs recently or are unemployed, your application may be denied. Consider reapplying when your income increases or you have been employed for more than 6 months.
- There is a problem with your credit report. If you have credit problems such as low credit score, late payments, or multiple inquiries into your credit history, you may be denied.3 You can improve your credit reports by making payments in a timely manner and clearing all outstanding debts.
Completing your online loan application is important. It determines whether your loan application will be accepted or rejected. Before submitting your loan application, make sure that you read and agree with the terms and conditions, and that you submit all of the required information correctly.