Getting a low-interest unsecured personal loan is usually more difficult than getting a secured loan. The lender doesn't have an asset like a car or house to recover, so a loan is more risky. You can try to reassure the lender by writing a personal loan proposal. The proposal shows that you plan to take a professional approach to the loan agreement.
Format your personal loan proposal like an essay or basic letter. Keep the proposal concise, at no more than three pages. Separate each point of the proposal into individual sections to make it simple to follow.
Introduce yourself in the first section of the proposal. Provide information about your background, such as a college education, skills and strengths. Explain your current employment situation and if applicable the long-term potential of that position. The Bureau of Labor Statistics (see Resources) provides profiles on common careers along with the projected demand for the job. This helps reassure the lender at you will have a job and the money to repay the loan over the entire term.
List your latest middle credit score (out of all three scores from Equifax, Transunion and Experian) on the proposal. The lender will still pull your credit reports but reading that your credit is excellent is a positive item on the proposal. If your credit rating isn't good or excellent, leave this information out of the proposal and spend more time providing positive background information that shows you can repay the loan.
Explain the purpose of the loan in as much detail as you're comfortable with. For instance, if you plan to use the money to take a vacation or catch up on some bills, provide that information. If you're planning to borrow from a bank, ask for the bank's policy on acceptable use of personal loan funds before you compose this section. Identify the exact amount you wish to borrow to accomplish your goals with the money.
Provide information on how you propose to repay the loan. Include the suggested term of the loan in months. The interest rate is up to the lender.
Attach a copy of your current budget (expenses and income) to the proposal if you want so that the lender can see that you can afford your payments.