Applying for a personal loan is an important choice for those who require emergency finances or want to satisfy their regular financial needs. Applying for a loan may appear simple, but if you are not prepared, you may miss out on the possibility of getting approved because getting approved all at once is difficult. This article will explain the secret to obtaining a personal loan accepted quickly, as well as build the groundwork and teach you things you may not have heard before to improve your chances of approval from the first application. If everyone is ready, let’s see …
Things you need to know before applying for a personal loan
Before you apply for a personal loan, there are certain things you should know to make the best decision and prevent future risks. So, let’s dig into the fundamentals of personal loans in Thailand, including loan types, required paperwork, and precautions, as well as recommendations to help you choose the best loan!
Getting to Know Personal Loans – What is a Personal Loan?
A personal loan is one of financial product that a bank or financial institution makes to an individual for personal reasons like emergency needs, home improvements, education, or starting a small business.
Outstanding Features of Personal Loans
Understanding the features of the loan will help you choose the right loan for you, which can be divided as follows:
• Personal loans without collateral
It is a loan that does not need collateral from the applicant. To get approved, the applicant must provide proof of income and acceptable credit.
• Personal loans with collateral
The applicant must use assets such as a house or car as collateral. The bank will assess the value of the assets before approving the loan.
• Instant online loan approval
Nowadays, many applications provide instant online loan approval to address the requirement for quick money.
Types of Personal Loan
Choosing the right personal loan depends on your purposes and needs. Personal loans can be divided into 3 main types:
• Lump Sum Loan
o Applicants will receive a lump payment immediately following approval.
o Repayment is made in monthly installments, plus interest.
o Suitable for certain applications, such as emergency bills or investments.
• Revolving Credit Line
o Applicants can withdraw funds within the approved amount and repay only the amount used in each borrowing cycle.
o When repaid, the credit will be returned to the full amount.
o Suitable for those who need reserve funds.
• Online Loans
o Provides services via application and website
o Fast approval and convenient to use
o Suitable for those who need emergency loans
Documents Required for Personal Loan Application
Preparing full documents when applying for a personal loan will help reduce approval delays. Important documents that are commonly utilized include:
• National ID card, which can be a copy of the national ID card or government official ID card
• Copy of house registration
• Income documents
o Pay slips for at least the last 3 months
o Salary certificate issued by the company
o Statement for the past 6 months
• Other documents
o Copy of employment certificate ( for those with permanent jobs )
o Business registration documents ( for entrepreneurs )
*** Preparing complete documents helps speed up the loan consideration process.
*** However, if you are applying for a legal instant online loan, such as SiamDL personal loans, the process is even simpler because when you enter the document upload page, we only require one month’s statement of account and the most recent income certificate or salary slip, which you can upload online. It is also completely secure because we connect the database directly to the National Credit Bureau Co., Ltd. (NCB) and verify your identification through the firm. National Digital ID Co., Ltd. (NDID) Online. We also secure loan applicants’ information under the Privacy Policy, in compliance with the Personal Data Protection Act 2019.
Precautions when Applying for a Personal Loan
While personal loans are a convenient source of funds, there are some precautions you should be aware of, including:
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High interest rates
Personal loans often have higher interest rates than personal loans with collateral, so be sure to check the interest rates and terms carefully.
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Debt repayment capacity
Assess your debt repayment capability before applying for a loan to avoid overwhelmed debt problems.
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Unreliable loans
Avoid borrowing from illegal lenders as you may be at risk of fraud or being charged excessive interest.
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Hidden conditions
Read the contract and terms carefully to avoid any unexpected fees.
Target Groups of Personal Loans
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Low-income earners
- For low-income individuals, “low-interest personal loans” are an appealing choice because they help to alleviate the stress of repayment. In addition, some financial institutions provide loans exclusively for low-income earners.
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Permanent employee
- Permanent employees have a higher chance of being approved because they have regular and stable income. Banks often consider monthly income and ability to repay debts.
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Entrepreneur
- Entrepreneurs or business owners who need capital to expand their business can choose a personal loan that offers a high credit limit and flexible terms to use as working capital for their business operations.
Tips for applying for a personal loan to get approval quickly!
Now that you have learned the details of the various facts of the popular financial product called ” personal loans “, We have some tips for applying for personal loans to get approved quickly. Let’s take a look!!!
Prepare complete documents
Preparing all necessary documents and keeping them up to date will help the bank evaluate the loan application faster. The basic documents required are: ID card, pay slip (last 3 months), bank account (showing income last 6 months), salary certificate or may use less documents depending on the conditions set by the financial institution.
Check your credit history.
Banks and financial institutions always check your credit history. If you have a history of debt default or a low credit score, your application may not be granted. Before applying, try to enhance your credit history by paying off existing bills, which includes settling previous debts and maintaining a strong payment history.
Choose the loan that suits you
Some online loans are specifically designed to assist low-income earners or entrepreneurs, so it’s important to read the terms and conditions before applying. You can increase your chances of approval by comparing offers from multiple banks or financial institutions, such as comparing personal loans with low interest rates or terms and conditions that you meet.
Demonstrate financial stability
Banks tend to look for borrowers with a steady income, so if you can show clear evidence of income and have a balanced budget, it will increase your chances of approval.
Use special promotions
Many banks offer promotions such as exceptional interest rates or low costs to applicants during specified periods, which you can learn about, monitor, and take advantage of through online channels at banks and financial institutions such as websites, Line, Facebook pages, and so on. However, I would like to point out that it is preferable to have an official account with a bank or financial institution to avoid being duped by online scammers.
Top 10 Questions about Personal Loans
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How is interest calculated on loans?
Answer
Personal loan interest rates usually come in two main forms:
- Flat Rate
- Interest is calculated on the total loan amount without decreasing based on the remaining balance.
- Suitable for those who want to pay in equal installments every month.
- Effective Rate
- Interest is calculated on the remaining balance of the loan, meaning the more you pay off the principal, the lower the interest will be.
- This is often cheaper than fixed interest in the long term.
Tips
- Calculate your payment capacity before selecting the interest type.
- Compare annual interest rates (APR) including fees.
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What should I do if the loan application is not approved ?
Answer
If your loan application is rejected, you should follow these steps:
- Ask the financial institution for the reason to verify whether it was due to incomplete documents, credit history, or insufficient income.
- Check your credit history. If you have a history of past debt repayments, you should fix it before applying for a personal loan again.
- Improve your debt repayment ability to reduce your current debt burden, such as closing some credit card debt.
- Try applying for a loan with other financial institutions, each of which has different consideration criteria.
Tips
- Reapply for a loan after the problem has been resolved for at least 3-6 months.
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How long does it take for loan approval ?
Answer
- Most banks take 3 – 7 business days to consider loan approval.
- Online lenders may approve your loan in as little as 1-2 days.
- Personal loan applications or legitimate loan applications may take 15 minutes to get approval.
Tips
- Prepare complete and correct documents before starting the loan application.
- In case of urgency, please inquire about express approval service or ask about average days and hours of operation of the financial institution first.
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How to choose the right personal loan ?
Answer
- Compare interest rates by selecting a loan with an interest rate appropriate for the repayment period.
- Check for additional terms and conditions, such as loan management fees and early account closure fees.
- Choose a reliable financial institution by verifying its licensing with relevant agencies. You may easily check it on the Bank of Thailand’s website.
- Check the list of commercial bank branches at https://www.bot.or.th/th/involve-party-branch.html
- Check the list of financial institutions and Non-Banks that the BOT supervises at https://www.bot.or.th/th/involve-party-open.html?listingType=InvolvePartyOpenListingResultsBank
- Check out the loan app at https://www.bot.or.th/th/license-loan.html
- Check BOT License Check at https://app.bot.or.th/BotLicenseCheck
Tips
- Use a personal loan comparison website to check out the best options.
- Example of trusted personal loan comparison websites >>> https://masii.co.th/thai/loan
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What is personal loan refinancing ?
Answer
Refinancing involves moving debt from one financial institution to another in order to get better terms, such as lower interest rates or more flexible repayment terms.
Tips
- Compare conditions before refinancing
- Consider potential fees
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Many people often say that personal loans are risky, so what are the unexpected conditions of personal loans ?
Answer
“ Unforeseen conditions ” in this context refer to terms or details that the borrower may not have been aware of from the start, which could affect your future loan application or repayments. Examples of these conditions include:
- Hidden fees, such as loan management fees, early closing penalties, or late payment fees.
- Effective Interest Rate (APR): Because sometimes, loan applicants may mistake a low interest rate for the actual rate they have to pay, but when including other fees, the actual interest rate may be higher than expected.
- Principal repayment requirements: For example, some loans may require borrowers to repay principal in a specific manner, which may not be as flexible as borrowers expect.
- Interest rate adjustments, in which case if the loan has a floating interest rate, the interest rate may increase according to market conditions, causing the debt repayment burden to be higher than planned.
- Income or documentation requirements: For example, financial institutions may request additional documentation after applying or conduct stricter checks on past income.
- Debt collection: In the event of a late payment issue, there may be strict debt collection or higher than expected fines.
- Impact on credit history: Applying for personal loans multiple times in a short period of time can lower your credit score or defaulting on payments can damage your credit history.
Tips – Prevention
- Read the contract carefully and ask any questions before signing the document.
- Compare personal loans from multiple sources to get the best terms.
- Check your credit in advance to avoid approval issues.
*** Being aware of these conditions will help you be better prepared and reduce your risk of unexpected requirements during or after your loan application!
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What are some ways to improve your credit history to make it look good in the eyes of financial institutions ?
Answer
Credit history has a huge impact on personal loan approval. If you have a poor credit history or have never had a loan before, you may be considered a “risk customer.”
Tips – How to Check and Fix Your Credit History
- Check your credit by requesting a credit report from a service provider such as a bank or a representative company and checking if there are any errors.
- Improve your payment history by paying off all outstanding debts and, if you have outstanding debts, work to reduce them to a manageable level.
- Build a good credit history by opening a savings account and making regular financial transactions. If you don’t have a credit history, you can start by applying for a low-limit credit card and making timely payments.
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How to choose the right personal loan for you ?
Answer
Choosing a loan that meets your needs and repayment ability is an important factor that can actually increase your chances of approval. You can consider the suitability of the loan by looking at:
- Purpose of using money
- If you need money for personal use, such as home repairs or emergency expenses, a general personal loan is suitable.
- If you need funding for your small business, consider an SME loan.
- Required credit limit and interest rate
- Choose a loan that offers a credit limit that meets your needs.
- Compare interest rates from multiple sources
- Installment period
- Choose a repayment period that suits your income and debt burden.
Tip – Find Personal Loan Information
- Use personal loan comparison websites to find the best deals. ( Click Here! To compare personal loans that best suit you for low interest personal loans )
- Read reviews or ask your bank or financial institution for more information.
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When applying for a personal loan, what should be avoided or prohibited practices ?
Answer
- Providing incorrect information because if the information does not match the documents, the application may be delayed or rejected.
- Apply for multiple personal loans at the same time because applying for multiple loans at the same time can negatively affect your credit history.
- Not having a repayment plan because you don’t have a clear plan may cause financial institutions to view you as irresponsible and incapable of repaying your debts.
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Are there any other tips for getting a personal loan approved quickly ?
Answer
- Choose a convenient and fast application channel because nowadays there are online loan applications that reduce time and hassle, and another thing you have to do is to check that the platform you are applying for has a secure identity verification system!
- Apply at the right time because some financial institutions may have promotions or special campaigns that increase the chances of approval, and some may have gifts when your personal loan application is approved as a first-time customer.
- Prepare for the conversation or interview because if the financial institution asks for more information, you should have clear answers and show confidence in your ability to repay the debt.
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Conclusion
Applying for a personal loan is simple if you are properly prepared and follow the steps correctly. The goal is to prepare proper documentation, check your credit, and select the appropriate loan. If you follow the suggestions in this article, you will raise your odds of approval while lowering the danger of unexpected conditions. And, whether you work full-time, freelance, or operate a small or medium-sized business, qualifying for a personal loan can be simple and quick if you have a strong strategy and follow the advice in this article.
“ Applying for a personal loan is easy, just prepare yourself and choose the right offer for you! Most importantly, borrow only what you need and can afford. ”
*** Thank you for the sources of good information from research articles and published documents to be used in implementing monetary and public policies to be more appropriate, including published documents prepared by:
- Bank of Thailand – Data collection, data preparation and dissemination standards ( https://www.bot.or.th/th/research-and-publications.html , https://www.bot.or.th/th/statistics/statistics-and-dissemination/standards-and-information-dissemination.html )
- Debtor Assistance Statistics – Debt Clinic and Debt Express ( https://www.bot.or.th/content/dam/bot/documents/th/helps-complaints/debtclinic.pdf.html , https://www.bot.or.th/content/dam/bot/documents/th/helps-complaints/graph_express.pdf.html )
- Information from electronic money service providers, both commercial banks and non-financial business operators ( non-bank ) – Total data of specialized financial institutions, 2019 – 2023
( https://app.bot.or.th/BTWS_STAT/statistics/BOTWEBSTAT.aspx?reportID=681&language=TH )
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No collateral or guarantor required. Credit approval up to 5 times your average monthly income or up to 200,000 baht. You can choose to pay in installments for up to 30 months.
- Fast cash loan, approval results within 15 minutes
- Personal loans provide full online services, such as applying, receiving money, checking balances, paying bills, payment schedules, etc.
- Legal loans under the supervision of the Bank of Thailand and taking care of data security according to the Personal Data Protection Act 2019.
- Transparent services provide fair loans with a normal interest rate of 25% and provide advice on debt burden problems.
- Low income can apply, starting at 12,000 baht or more.
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Contact us
- Address: 8th floor, Dr. Gerhard Link Building 5, Soi Krungthep Kreetha 7, Huamark, Bangkapi, Bangkok 10240
- Tel: 02 016 9300
- Office hours: 08:30 – 17:30
- Email: [email protected]
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*** Borrow only what you need and can afford / Maximum interest rate 25% per year
*** Siam Digital Lending Co., Ltd. is a socially responsible financial service provider that offers personal loans SiamDL through the Siam Digital Lending app. It is licensed and governed by the Bank of Thailand.
