Key criteria to consider when applying for a loan
What do I need to get a loan?
Applying for a loan can feel like a big step but it should be straightforward. Knowing what’s required can give you confidence and make the process smoother.
While every lender has their criteria, there are a few key things most will look for. Understanding these from the start means fewer surprises and a more stress-free experience.
What criteria do I need to meet to get a loan?
To qualify for a loan in the UK, you typically need to:
- Meet a minimum age requirement (usually 18 or 21)
- Live in the UK
- Have a UK bank account
- Own a home (if you’re applying for a secured loan)
- Have a regular income to cover repayments
Beyond this, each lender has slightly different criteria. If you’re unsure, it’s always best to check your eligibility.
What do lenders need to know about me?
When you apply for a loan, lenders need to know some key details. This isn’t to make things complicated but to help them ensure they’re providing the right solution for you.
Your personal details
Before moving forward with your loan application, lenders will need a few key details about you, such as your:
- Full name
- Title
- Date of birth
- Marital status
- Address history
- Contact details (like your phone number or email address)
This helps lenders understand your situation and reach out if they need any more information. Don’t worry, as it’s all part of making the process smooth and straightforward for you.
Your finances
Lenders also need to get a clear picture of your financial situation, including details of your:
- Employer, job title and time in employment
- Annual salary
- Monthly income, including your wages and any extra income you receive
- Regular outgoings, bills and subscriptions
- Credit history
By providing this information, you can help lenders work out whether the loan is the right fit for you. It’s all about making sure you can borrow with confidence and meet the repayments without causing yourself financial problems.
What documents do I need to apply for a loan?
Lenders will ask for certain documentation to verify the information you provide. Having the right documents ready can make the process smoother – and might even speed things up!
Every lender is different, so the documents needed to apply for a loan can vary. But to give you a head start, here’s some of the key documentation you might need.
Proof of identity
These documents confirm who you are, verify your personal details and help your application move smoothly. You could use:
- Passport
- Driver’s licence
- Blue disabled drivers pass
- UK Armed Forces ID card
- Biometric Residence Permit
Proof of address
These documents let lenders confirm you live at the address you’ve provided. Many lenders will accept:
- Your driver’s licence
- A local authority tax bill for the current year
- A recent utility bill (no more than three months old)
- A recent bank or building society statement
- A tenancy agreement
Proof of income
To confirm your earnings, you’ll need to provide documents that show your income clearly and accurately. These might include:
- Pay slips from your employer
- If you’re self-employed, SA302 forms from HMRC showing your tax returns for the last 2-3 years
- Any documentation that can show additional earnings like rental agreements or benefit documents
Bank statements
Bank statements help lenders understand your regular outgoings and ensure that a loan is the right fit for you. They also confirm that you have an account where lenders can deposit the loan and from which you can make repayments.
In many cases, your bank statements can serve as proof of your outgoings, income and address, making the application process simpler.
Existing debt statements
If you have any existing debts like mortgages, loans or credit cards, lenders may ask for recent statements for each. This will help them work out whether you can afford your repayments given your current commitments.
What documents do I need to apply for a loan when self-employed?
You’ll need various documents to confirm who you are and if you can afford a loan. Mark Campbell, Loan Manager at Evolution Money, advises:
“Requirements vary between lenders but, if you’re self-employed, you’ll usually need at least:
- Proof of identity: A valid form of ID, such as your passport or driving license.
- Proof of address: Recent utility or council tax bills will cover it, or bank statements.
- Tax returns: This is easy if you’ve completed tax returns while self-employed – just log into your HMRC account and download your SA302 calculation. This can show your earnings for the last four years or any individual tax year.
- Bank statements: These allow lenders like us to confirm your SA302 and get an idea of your overall financial situation from your regular income and outgoings. This includes income earned separately from your self-employment, plus other credit commitments.
- Business information: This typically includes confirmation of the status of your business – for example, if you’re a limited company or sole trader – plus details of anyone else with a financial interest in it.”
What documents do I need for a secured loan?
The documents needed to apply for a secured loan are similar to those you need for a personal loan. But you’ll also need to provide documents related to the property you’re using as collateral. These may include:
- A property valuation report, confirming the current market value of your home
- Proof of ownership, such as a mortgage statement or a copy of the title deeds
- Consent to a second charge, which is written permission from your mortgage provider for you to take out a secured loan on the property
What credit score do I need to get a loan?
Most lenders will look at your credit history when you apply for a loan. Some lenders have a minimum credit score requirement you’ll need to achieve to qualify for a loan, but requirements can vary. In general, the higher your credit score, the more likely lenders are to approve your loan application.
Other lenders take a broader view of your financial situation, with your credit score not being the only factor that matters. If you’re unsure where you stand, it’s worth exploring your options – there may be solutions that fit your circumstances.
Check your eligibility with Evolution Money
Understanding what you need to get a loan can feel complicated – but it doesn’t have to be. At Evolution Money, we’ve designed the process to be simple and stress-free, so you always know where you stand.
We offer tailored secured homeowner loans from £5,000 to £100,000, with flexible repayment terms between 3 to 20 years. And if you’ve had bad credit in the past, don’t worry – we focus on where you are now, not just your history.
To get started, just fill in a few quick details using our online application form, and we’ll give you a quote. From there, one of our friendly advisors will call you and walk you through your options so you understand what you need to qualify and what documents to provide.
Curious about what others think? Check out our Feefo reviews to hear from real customers. And if you’re looking for practical tips on personal finance, our help and advice hub has plenty of useful insights to explore.
Representative 22.93% APRC variable.
For a typical loan of £26,600 over 180 months with a variable interest rate of 19.56% per annum, your monthly repayments would be £484.00. This includes a Product Fee of £2,660.00 (10% of the loan amount) and a Lending Fee* of £763.00, bringing the total repayable amount to £87,030.00. Annual Interest Rates range between 11.7% to 46.5% (variable). Maximum 50.00% APRC. *Lending Fee varies by country: England & Wales £763, Scotland £1,051, Northern Ireland: £1,736.
Think carefully before securing debts against your home may be repossessed if you do not keep up repayments on your mortgage or any other loan secured against it. If you are thinking of consolidating existing borrowing, you should be aware that you may be extending the terms of the debt and increasing the total amount you repay.
