In this brief guide, we are going to address the query “If I apply for a personal loan do I have to accept it”.

If I apply for a personal loan do I have to accept it?

No, you do not have to accept a personal loan because you applied for it. Applying for a personal loan simply means giving the lender an opportunity to assess your application and then decide on if to make you an offer or not.

You then have a choice on if to accept the personal loan offer from the lender or reject it.

A personal loan offer will usually be valid for 3 to 6 months depending on the lender.

Once a lender has made you a personal loan offer, you will see where to accept it online, as this will be clearly marked, or if it is in person then you may simply have to sign your signature as a means of accepting it.

Steps for applying for a personal loan

To avoid having to return a personal loan, you can follow these steps when applying for a personal loan.

  • Identify exactly how much you need (+ a contingency amount)
  • Get your income and tax documents ready
  • Use an eligibility checker

Identify exactly how much you need (+ a contingency amount)

Before you apply for a personal loan you should work out exactly how much you need and if a contingency percentile is also needed.

Once you have worked this out and you are certain you have got your numbers right, you can then move on to the next step.

Get your income and tax documents ready

Most personal loan lenders don’t ask for your income and tax documents but if you feel the need to be extra prepared or if you are applying for a large sum then you should gather your income and tax documents in case the lender asks for them. 

Use an eligibility checker

The final step in getting a personal loan is to ensure you use a personal loan eligibility checker which will scan the market to find you the best personal loan rates and in most cases show you which personal loans you are pre-approved for.

Be sure to inquire on how many lenders the eligibility checker has on their panel before checking with them.

Most eligibility checkers work by doing a soft credit check to pull your credit details and match them up with the lender’s scorecard or criteria and then determine if the lender will be willing to lend to you.

Soft credit checks are not visible to the public.

In this brief guide, we addressed the query “If I apply for a personal loan do I have to accept it”.

John has 22 years of experience in financial services. This spans across financial research, financial services (As a qualified mortgage broker and underwriter), financial trading and sales at global investment banks. While working as a publishing research analyst, he covered European bank credit and advised institutional clients on investment strategies at both JP Morgan and Societe Generale. John has passed all three levels of the CFA (Chartered Financial Analyst) programme.

John has 22 years of experience in financial services. This spans across financial research, financial services (As a qualified mortgage broker and underwriter), financial trading and sales at global investment banks. While working as a publishing research analyst, he covered European bank credit and advised institutional clients on investment strategies at both JP Morgan and Societe Generale. John has passed all three levels of the CFA (Chartered Financial Analyst) programme.