Getting a loan.

brave inca

Hi,

Ive never got a loan before and I was just wondering how difficult it is to get a loan from the bank. I was planning on going on hollidays next week and have to pay for flights tomorow. I am depending on a loan from the bank for spending money.

I was looking to take out a loan on Monday. Before I go and ask for one I would like to no my chances of getting one. This will help me decide on how much to ask from the bank. My account is with Aib. I am currently working at the moment. I get paid about 1700 a month. The thing is, I currently have an overdraft with AIb worth 1300. Will this have any effect on the chances of me gettin my loan? I was planning on getting a loan for 600, Where I would pay 150 for the next four months to pay it off. At the moment my balance is in overdraft of -1300. I also have an account with Bank of Ireland. Would there be a better chance of me getting a loan from there?

Quick Summary - I am looking for a Loan next week for a holliday but because my bank history doesnt read too weel and the fact that I have an overdraft of 1300 I feel I wont get the loan.

Thanks in advance for any advice given!

brave inca

would this be a better option. If I ask to cancel my Overdraft for 1300 and then ask for a 2k loan. I could pay 500 euro back in monthly installments and the Loan would be paid off in 4 months.

dotsman

Both options are feasible (depending on a variety of other information).

The other thing to remember is that for such a small sum, for such a short period, there's no profit in the loan for the bank (more likely they would be making a loss), so it would be more as a favour to you (if you are a good customer) than as standard transaction.

However, you may not be able to get the loan straight away. Usually, there is a turnaround of a few days between applying for a loan, getting approved, signing the contracts and having the funds transferred to your account.

ImDave

As dotsman says, there is usually a turnaround of a few days. However, I was suprised when I took out a small loan last year. I went in that morning, held a short meeting with a loan manager, came back that afternoon to sign it up and the funds drawen down into my account by close of business.

stepbar

brave inca wrote: »

Hi,

Ive never got a loan before and I was just wondering how difficult it is to get a loan from the bank. I was planning on going on hollidays next week and have to pay for flights tomorow. I am depending on a loan from the bank for spending money.

I was looking to take out a loan on Monday. Before I go and ask for one I would like to no my chances of getting one. This will help me decide on how much to ask from the bank. My account is with Aib. I am currently working at the moment. I get paid about 1700 a month. The thing is, I currently have an overdraft with AIb worth 1300. Will this have any effect on the chances of me gettin my loan? I was planning on getting a loan for 600, Where I would pay 150 for the next four months to pay it off. At the moment my balance is in overdraft of -1300. I also have an account with Bank of Ireland. Would there be a better chance of me getting a loan from there?

Quick Summary - I am looking for a Loan next week for a holliday but because my bank history doesnt read too weel and the fact that I have an overdraft of 1300 I feel I wont get the loan.

Thanks in advance for any advice given!

Question is.... Could you realistically afford to repay 500 eur a month? Last thing you want is payments being bounced. What ever chance you have with AIB you would have it harder with BOI. Believe me I know......

The only positive I see here is that your monthly wage is enough to clear the overdraft every month. I wouldn't be volunteering to cancel your overdraft with AIB just yet. Put in for what you want and if it's rejected go back and go for the 2k and cancel the overdraft. But be realistic about the term. Before you go to the bank do out an excel sheet for yourself with your incomings and outgoings and see what you are left with. Go into the bank with a figure in your head as to what you can realistically afford to repay bearing in mind any emergency expenses that may come up during the month e.g car service, car tax / insurance etc etc. TBH 600 eur is not a lot but a little preparation beforehand will serve you well.

brave inca

stepbar wrote: »

Question is.... Could you realistically afford to repay 500 eur a month? Last thing you want is payments being bounced. What ever chance you have with AIB you would have it harder with BOI. Believe me I know......

The only positive I see here is that your monthly wage is enough to clear the overdraft every month. I wouldn't be volunteering to cancel your overdraft with AIB just yet. Put in for what you want and if it's rejected go back and go for the 2k and cancel the overdraft. But be realistic about the term. Before you go to the bank do out an excel sheet for yourself with your incomings and outgoings and see what you are left with. Go into the bank with a figure in your head as to what you can realistically afford to repay bearing in mind any emergency expenses that may come up during the month e.g car service, car tax / insurance etc etc. TBH 600 eur is not a lot but a little preparation beforehand will serve you well.

Thanks, Sound advice. i have though about it and Im going to go down and ask for a loan of 2k. Pay off the overdraft and have the overdraft cancelled. Leaving myself with 700 credit. I will pay the loan off in 10 months rather than 4. 200 euro will be taken out of my wages for ten months.

brave inca

Just one more question.

Does your transaction history effect your chances of getting a loan. I dont see why it should as long as you have the money to pay the loan off. When my wages hit my account, the bank will automatically take the money I owe straight out. So if they are guaranteed the money why should my transaction history matter?

Thanks!