The minimum and maximum borrowing limits are set by each lender and the amount of your personal loan limit depends on your creditworthiness. Ask yourself about your needs. If you’re taking out a loan for something just nice to have, like a vacation, you might want to consider building towards that goal by opening a high-interest savings account. However, if you’re consolidating debt or covering unexpected expenses, a personal loan may be in your best interest. The amount you request when taking out a personal loan should be limited to your actual need. Borrowing more money than you need ends up making the loan more costly over time. To calculate how much money you should borrow, add up all your debts or anticipated expenses to come up with an ideal loan amount.

Make sure you know what documentation to bring with you. You will need your social security number and basic employment and income information to apply for a loan with Santander. Once we receive the application, we will determine if any additional information is required. With any lender, you’ll need to verify your identity, provide your social security number, provide proof of income, and state the purpose for your loan.

Depending on your credit score and other factors, the interest rate may impact your decision to borrow. Think of an interest rate as an expense for borrowing money from a lender. The amount of interest is bundled with your payments. Be sure to ask about how the interest rate affects the cost of borrowing the loan before signing the paperwork.

Some lenders may allow a cosigner on a loan, which could help an applicant get approved for the loan. With a cosigner, if something happens and you are unable to make payments, the cosigner can be held responsible for repayment of the loan. Santander Bank does not have cosigners on loans, but does allow co-applicants. With a co-applicant, both people are equally responsible for the loan.

The loan origination fee is probably the largest single closing cost you’ll encounter, as it’s the primary way lenders make money. Lenders typically charge 1% of the total loan amount for the origination fee.