If you are looking to launch a new business or buy a new house, you will automatically need to apply for a long term loam. However, getting approved after applying for a long term loan isn’t always a piece of cake.
Let’s calculate the amount of time until you aquire the money from a long term loan.
What factors are considered for a loan?
Firstly, remember that each kind of long term loan has different lending time scales. Lenders also usually evaluate your eligibility for a loan on the basis of some specific factors. These include:
- Your credit score and reports
- The history of your payments
- Your personal and business cash flow
- Your annual estimated profit
- The amount and type of loan you have requested
A typical long term loan in the UK can get approved within a month if you own a very good credit core with a healthy cash flow each month. There are however, two major types of long term loans, secured and unsecured loans. Timelines for both, differ.
For Unsecured Loans
Unsecured loans generally involve lesser risks and can get approved quickly as well. These types of loans can only be taken for a short period of time.
For Secured Loans
In contrast, secured loans allow you to borrow more cash for a longer amount of time (Sometimes even 20 years). This is because they have your Error! Hyperlink reference not valid.NINO, account information along with home/car papers secured and you can lose them if you are a defaulter. Accordingly, the approval for these loans is time consuming with a thorough check of your credit reports as well.
For Student Loans
Student loans are a type of long term loan, where you get approved quicker than the others because in Britain, they are primarily provided by the government. According to The Telegraph, around 610,000 students across England and Wales alone, applied for student finances in 2016.
Alternatives for Quicker Approval
There are different kinds of lenders and each one of them has different regulations for each type of loan they offer. Borrowers who are in a rush can get a long term loan fast through lenders who offer long term loans even on an average credit score but the disadvantage of getting a long term loan with a bad credit is that you are not sure when and how you will be able to pay back, so the risk involved may be alarming.
Generally, clients with a good credit score and cash flow get approved quicker than others. Once the approval has been given, it can take anywhere from 3 to 5 business days to get money into your designated account. This may vary, depending on your lender, so be sure to check the timeframe when you are applying for the loan. Once the money is in your account, you can use it for personal or business purposes as needed without facing any issues.