How to Get a Personal Loan From a Private Lender

culled from:wikihow.com

Steps

1

Find lenders. In order to get the best results for a personal loan, get connected to several lenders and go through the application and negotiation process.

• Find out which lenders are in the business of personal loans. Not all banks and lenders want to do these kinds of loans, and trying to make a bargain with an uninterested lender will be a waste of time.
• Look for banks and credit unions that know you. Experts recommend using lenders who already have a prearranged relationship with the borrower. This can make the lending process easier.

1. 
   2
   Evaluate alternatives. Generally, those who need to borrow money do have some other choices besides formal bank loans. Follow up on more advantageous loan options before going with a bank personal loan which may include lots of interest and strict terms, not to mention up-front costs.
   • Take a look at micro-lending or peer-to-peer lending opportunities. This kind of lending has been popular, where single investors contribute to a personal loan, bypassing the bank lending process.
2. 
   3
   Present credit. Those who want a personal loan should know their credit score and be able to present a good score to lenders in order to establish their credit worthiness.
3. 
   4
   Show income and assets. In getting personal loans from a private lender, it almost always helps to show high income or savings, or physical assets that can help boost the credit worthiness of a borrower.
   • Consider secured and unsecured loans. If you have items that can serve as effective collateral, this may help in providing better personal loans that have more of a chance of being accepted by the lender.
4. 
   5
   Assess costs and interest rates. One of the main points of making sure that a personal loan is a good deal for the borrower is looking at how much interest that person will have to pay out over the term of the loan. Having good credit, income and assets will help the borrower qualify for better personal loans or loans with lower interest rates.
5. 
   6
   Fill out loan applications. When borrowers find a personal loan from a private lender that they think will be a great deal, they can pursue this particular loan by filling out the application documents and waiting for a response from the lender.