It seems that, in the dead of winter, we are all dreaming of a way to escape to the perfect sunny getaway. Some people are looking at their home and thinking of ways to improve it. Other people are wishing that they had a much sportier car. Then they look at their bank balance and reality takes hold. A personal loan could turn your dreams into reality. Take a look at this guide on how to obtain a personal loan from your bank: What Is A ‘Personal Loan’? A personal loan is a loan from the bank that allows you credit for personal use. A personal loan can be used for a variety of things, from home improvements, cars and holidays or to be used when in times of hardship. Personal loans can also be used to consolidate existing debts. The loan is usually awarded to people based on their ability to pay the loan back in the agreed allotted time as set out by your bank. How Much Can I Borrow? The amount you lend is entirely up to you. depending on which bank you choose to borrow the money from will depend on what the limit is that you can borrow. Shop around to see what bank is offering the best deals. Research into personal loans can be done online, and many banks have a loan calculator that can help you see how much can be borrowed and in what time it needs to be paid back. Some banks will allow you to borrow up to £25000. Clydesdale Bank offer loans from as little as £1000 up to the top limit of £25000. The Importance Of Being A Low Risk With this in mind, should you want to take out a higher loan, banks will only lend to people that they believe to be low risk. This means that if you have a good credit history and are in a secure job, you are more likely to be accepted for a personal loan. Obtaining a loan can be difficult for those who have moved frequently, or have a poor credit rating. To ensure that you are accepted for a personal loan, check your credit history. It is important to know what may stop you from obtaining credit. Once you are aware of this, you can make the appropriate financial changes to ensure that the bank approves your loan. Mistakes can be made, so it is important to check that your credit history is as it should be. While the process can be a long one in terms of correcting possible errors with regards to your credit history, it is important to be diligent to ensure that these mistakes are rectified. Banks will want to check your financial history, so be prepared to discuss your finances openly and honestly. If you do not do so, or fail to provide the required information, your personal loan may be declined. Do bear in mind that when you borrow from the bank, only borrow what you can afford. This is including interest. Amounts of interest can vary from bank to bank, so do ensure that you look into interest rates before taking out a personal loan. Debt Crisis Finally, the most important thing to remember when looking into personal loans is to ensure that you can afford what you are borrowing and that you can afford to repay what you have borrowed. Many people fail to do the correct research and subsequently find themselves in a personal financial crisis. The consequences of not being able to keep up with the repayments of your loan can be costly.