- November 13, 2021
A Guide for Single Mothers to Get Loan Approval
We understand the challenges single mothers face while they try to manage everything on their own. To increase the troubles, the lenders don’t consider them as an ideal applicant for a loan because of various reasons. And there is no end to the financial difficulties to require support from the outside.
The private lenders in the financial market may solve the problem because of a different approach than the banks. The focus remains on the affordability of the loan instead of the unnecessary eligibility requirements. However, the process doesn’t seem easy for the new borrowers by integrating the latest financial technology.
Here, we will go through the different aspects of the lending process to help single mothers get approval for loan applications. Every minute you spend on the research will make the process easier and loan cheaper.
Requirement for a Loan
The requirement for a loan doesn’t include a perfect profile or a long list of documents. Though, we try not to put unnecessary stress on our borrowers of the instalments to increase the troubles. Here are the requirements for the borrowers to get loans for single mothers with bad credit.
- Documents for Verification
We need to verify the information you put on the application form to assess the profile. Your identity and bank account are essential to start the approval process. In the end, a soft credit inquiry will provide the required details of your profile to make a decision.
Thus, you must gather the essential documents to avoid rejections or delays in approval. Also, check the documents for some errors before uploading them since it can also lead to rejection. It can take around 30 days to rectify the mistake after the issuing authority completes its inquiry.
- Low Debt-to-Income Ratio
Your affordability will depend on the money you are left with after repaying the existing debts. It is important for a safe lending environment without the risk of defaults. Also, we have to follow certain guidelines of FCA set for the benefit of lenders and borrowers.
You can still get the loan application approved in the absence of a regular job. Any type of income from a part-time job, government benefits, or pensions can make you eligible for the loan amount. The only requirement is the affordability of the instalments from your alternate income.
- Business Plan (for Business Loans)
Women business owners may get special offers on the loans as part of the efforts to promote gender equality. You need to provide a detailed plan about your business to get approval for a business loan. Also, you must submit the relevant documents such as financial reports, forecasts, and the other details of your business.
Do not worry if you don’t know the process to create a detailed business plan. Our representative will assist you in ensuring the great ideas ends up as a reality. Also, you can get grants for single mothers in the UK to grow the existing business or manage a financial crisis.
You will find the application process for online loans extremely easier than traditional loans. It will take only a few minutes to complete the entire process from your end. Following are the important parts of the application process.
- Online Form Submission
You need to fill the online application form with the required details to start the application process. Unlike banks, you don’t have to stand in the long queues to get the signatures or stamps on your form. Also, it significantly reduces the time it takes to file the application and get approval.
You should check the loan calculator to find the instalments and overall cost of the loan. It will help you select the loan amount and tenure within your affordability range before you fill the application form. Moreover, the document submission is also online with a scanned or digital copy.
The approval is instant for the loan application since the entire process is online. It will only take a few minutes to verify the details and assess your profile. Therefore, you will receive the approval letter in the email within a few hours.
You must read the entire document to make sure the offers suit your requirements. Missing the small details on the agreement can result in endless troubles during the repayment. Also, contact the representative to ensure the reason is valid for the rejection of your application.
- Fund Disbursement
The fund disbursement is the final stage of the application process. We will transfer the loan amount within 24 hours of the application to the accounts of eligible borrowers. Therefore, the loan is ideal for single mothers looking for no guarantor or unsecured loans to manage sudden emergencies.
You can ask the representative to send the loan amount as cash for small loans. It will save you a trip to the nearest bank or ATM. Similarly, you can ask them to collect the instalment from the doorstep for added comfort at minimal charges.
Tips to Increase Chances of Approval
The chances of loan approval are already high for single mothers when they apply at a direct lender. Still, you can improve your profile further to increase the chances of approval or better interest rates. Here are some simple tips to improve your profile for a loan application.
- Repay the Existing Debts
You should focus on repaying the existing debts to improve the affordability of a loan amount. As mentioned earlier, the income to debt ratio is an important factor while assessing your loan application. Therefore, focus on the loan repayment if you can wait for the new loan.
However, it may seem intimidating if you are already amidst a financial crisis. Try the debt consolidation loan to make the repayment easier and reduce the overall cost of the loan. The reduced instalments may provide enough space to manage the instalments of the new loan comfortably.
- Increase the Down Payment
Again, put the application of a new loan to rest and continue the savings for the down payment. The increase in down payment reduces the risk for the lenders to offer the loan amount for a new asset. You can also take bridge loans or other short-term loans to increase the down payment and get a better offer on the mortgage.
- Increase the Income
It may seem like the most obvious yet very difficult advice to implement. However, increasing the income is easier than you may have expected in the present environment. You need the right skills to find clients as a freelancer or solopreneur.
Also, you can start selling some homemade items on the online marketplaces to make some additional money. A part-time job is also an option if you find time and energy outside the regular job. Make sure the additional stress doesn’t take a serious toll on your mental and physical health to increase the troubles.
To sum up, single mothers don’t have to face much trouble with financial assistance if they select the right lender. The process is simple and fast enough to ensure you don’t have to wait during an emergency. Also, assess your repayment ability to avoid the overwhelming stress of repayment.