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Traditionally, applying for a loan is fraught with difficulties. From not having the right credit score to waiting weeks for a response, loan applications have the ability to cause unnecessary hassle.

However, with the rise of online lenders in recent times, the process has become a lot smoother. Unsure about the process of getting a loan? Here is our step by step guide, which lays out everything you need to know.

Check if you are eligible

First things first, making sure that you’re eligible for a loan before you start an application will save you a lot of time. In order to successfully apply for a loan with Koyo you:

  • Must be over 21 years old
  • Must be a resident of the UK for at least six months and provide us with your addresses in that time
  • Cannot be bankrupt
  • Must receive a regular income
  • Cannot be self-employed
  • Must have a mobile phone
  • Must have no history of bad credit or CCJs
  • Must have a valid email address

Unfortunately, if you don’t fit any of these requirements, you won’t be eligible for a loan with us. If you want to look more deeply into your eligibility generally, it may be worth using an eligibility calculator to make things clearer.

Use a personal loan calculator

Next up – using a personal loan calculator. A personal loan calculator allows you to choose how much you want to borrow and how long you want to borrow it for. In turn, a loan calculator will provide you with a more realistic idea of what your repayments, including total interest and representative APR (annual percentage rate), could be.

You can then decide if you can afford the repayments, thanks to a clear and easy to read format. From £1,500 to £12,000, we have a wide range of options in terms of the loan amount, along with terms that go up to 60 months. 27.9% APR Representative.

Personal information

Do you tick all the boxes for eligibility and are you comfortable you can afford the repayments? If so, it’s time to get your application started. Entering some basic personal information is the first step in getting a loan. Here is the information you’ll need to supply us with:

  • Title and name
  • Email address and phone number
  • Date of birth
  • Nationality
  • Marital and residential status 
  • Current address
  • Employment status, employer, job title and industry
  • Gross annual income and monthly rent or mortgage payment
  • The reason for your loan application

This basic information is the foundation of information used by Koyo loans to determine whether a customer is fit to repay the loan. From start to finish, the whole application process will only take 3 minutes to complete.

Open Banking check and submission

Once your application is submitted, Koyo will do a quick bank check. Koyo Loans works differently from traditional banks and lenders (who still only use CRA data) when assessing your application. As a modern, entirely online lender, we know there’s more to the picture than just your credit score.

On top of a credit check, a third-party provider called Truelayer (regulated by the FCA) provides us with access to Open Banking data, so we can assess and validate financial information. This then allows us to reasonably and fairly decide if the applicant is able to afford the loan. Think of it as the online equivalent of the bank statements you get through the post each month – we have read-only access in order to assess your ability to pay for a loan. 

Decision

Once your Open Banking check is completed and approved, a decision is usually made within 48 hours from the submission of your application, with the money appearing in your bank account straight after approval. After your loan has been approved you can then manage things in our online portal space. Simply enter your account login and password and you’ll be able to keep on top of all your repayments. 

If you’re unsure about any part of the application process, feel free to refer to our FAQs page for further information. Alternatively, you can also get in touch with us for a chat if you haven’t found the answers you were searching for!

If you’re looking for a flexible personal loan of £1,500-12,000, you can use our loan calculator or submit an application at www.koyoloans.com. 27.9% APR Representative.

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