FREE 6+ Personal Loan Proposal Samples in PDF

When getting a loan, most individuals go to lenders to loan money for their individual needs. However, lenders don’t always grant loans right away. An individual has to go through a lengthy process just to be able to be granted their loan money. One of the things they need to do is to create a loan proposal. Lenders need to analyze a loan proposal to see if the individual can repay the loan money by the lenders’ terms by looking through relevant financial information. If you’re planning to get a loan, you need to create a convincing proposal to your lenders that they will lend you their money. If you’re interested to know how to create a personal loan proposal, read the article below.

When getting a loan, most individuals go to lenders to loan money for their individual needs. However, lenders don’t always grant loans right away. An individual has to go through a lengthy process just to be able to be granted their loan money. One of the things they need to do is to create a loan proposal. Lenders need to analyze a loan proposal to see if the individual can repay the loan money by the lenders’ terms by looking through relevant financial information. If you’re planning to get a loan, you need to create a convincing proposal to your lenders that they will lend you their money. If you’re interested to know how to create a personal loan proposal, read the article below.

6+ Personal Loan Proposal Samples

1. Personal Car Loan Proposal

2. Personal Loan Request for Proposal

3. Personal Loan Proposal Form

4. Home Personal Loan Proposal

5. Personal Loan Application Proposal

6. Health Insurance Personal Loan Proposal Form

7. Personal Accident Loan Proposal

What is a Loan Proposal?

Loan proposals are formal written documents that individuals prepare when they approach potential lenders or investors for funding. Most loan proposals must include a loan application form (from the lender) and a business plan with a comprehensive financial statement attached.

To ensure that a loan proposal is written the right way, here are the four things you need to address clearly:

1. How much money do you need
2. How you will use the money
3. How you will repay the loan
4. What you will do if you’re unable to repay the loan

Details to Include in a Personal Loan Proposal

• Executive Summary: Start your proposal with a brief executive summary where you clearly describe who you are and provide your background (such as work or business background, and your educational background). If the loan is for your business, you can include details regarding the nature of your business or start-up. Give a brief explanation as to how the loan will be used.
• Business Profile: This part is for when you apply for a loan proposal for your business. Give details regarding the history of your business and give an overview of your current activity and its results. Describe your target market and the industry your business belongs to. You also need to describe your management team (if you have any) by providing details regarding their experience, qualifications, and skills. Disregard this section if you’re applying for a loan that is not related to any business funding and proceed to the next step.
• Loan Request: This section is where you state the amount of money you need and explain where you will use the loan money for and why do you need it. Explain how you determined the amount you need by providing more information regarding your reason.
• Loan Repayment: Give details regarding the terms you hope to receive such as interest rate, loan term, etc. Give proof that will convince the lenders that you can meet that repayment schedule based on your sales or salary and cash flow projections. Some lenders will negotiate regarding the loan terms with you based on their risk assessment of you or your business so don’t be too surprised if the terms you ask for may not be what you expect to get.
• Collateral: Describe any collateral terms you’re willing to pledge as security for your loan in case if you can’t repay the loan properly.
• Financial Statements: Attach copies of your financial statements such as your current personal budget, with information on your income and expenses flow and your tax return details for the previous years. Make sure your financial statement is no more than 90 days old. For your business, you also need to include its complete financial statements including the balance sheet, income statement, equity investment, projections, and reconciliation of net worth for the last three years up to the current one. If your business is a start-up, provide a projected balance sheet and income statement.
• Other Items to Attach: For business loan proposals, you need to include copies of the lease, franchise agreement, purchase agreement, business licenses, and registrations

FAQs

Once you’re done writing the proposal, make sure to review it first to check if there are any errors in it. Double-check your financial statements to make sure they’re all accurate. Have a friend or colleague check your proposal before you send it to the lenders. You don’t want to get rejected or start all over again because of some mistakes you forgot to eradicate. To help you get started making the contract, download our free sample templates above to use as your guide!