Why are there so many steps to go through just to get a loan? Loans always come with a risk that the lender will not pay the money back. The more likely people are to default, the higher the interest the lender will charge. When lenders promise easy money and are not too fussed about what the loan is for or what your means of repayment will be, the interest rate will be correspondingly high. So to get a loan at a reasonable interest rate which involves a low risk, the lender will need to assess your application more closely and attach more restrictions on what the loan is for. A person who cannot pay their electricity bill is unlikely to be able to repay a loan for a holiday. A person after a debt consolidation loan may already be in trouble with multiple lines of credit that they are having trouble keeping up with. Anyone willing to lend to such people has to cover the high risk of default by charging extremely high interest rates. So instead of 4% to 14% it becomes 40% to 4,000%.
(Be sure to read the article below about StepUP Loans to get a better perspective)