Get Loan Accepted With These Priceless Tips. The banking and finance industry often appears to be complicated and it is also seen as unfair, especially to those whose loans get rejected.
But the truth is, the entire industry works on a simple philosophy.
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Lend to anyone who can repay. Don’t lend to anyone who cannot repay. It is as uncomplicated as that and it all boils down to simple maths.
Thus, if you want to get loan accepted then cater to that philosophy. Appear as a prospective borrower who has the ability to repay or will repay.
The reason why credit scores and loan amounts, income and tax returns become so important in loan application procedures is because they determine a borrower’s history, intention and ability to repay.
If you want to get loan accepted then use these priceless tips
Always look for a lender who is appropriate for your loan. Some lenders are ideal for student loans, some for mortgage, some for car loans, some for personal loans and some are more eager to offer business loans.
There are a few lenders that would be good for all these purposes but most lenders have a preference. Usually, when lenders fare well in a certain type of loan, they develop a preference for such loans and they would be a tad lenient when they get such purposes.
Don’t ask a lender for a personal loan who is more into mortgage. The chances of getting approved increase exponentially when the lender is in a comfort zone!
Always apply for a value you would qualify for. You can do this maths yourself. Take your income into consideration, deduct all the monthly expenses, financial obligations, repayments for any pending loans and some miscellaneous expenses which are uncertain and sporadic and see how much you are left with.
This is the money you can pay every month towards the installment for the loan you are applying for. If the amount you can pay is less than the installment or exactly the same then your chances of getting approved would diminish.
Reduce the loan amount so the installment amount gets reduced as well and you should get the loan accepted. Alternatively, you can try to increase your income or increase the down payment if it is applicable so the lender figures out that you can comfortably repay or take care of the installments.
Lenders are willing to bend provided they see the right intent in the borrower. They are not as rigid as most people think.
Ask for more details and always walk a step more to learn the requirements. It is quite possible that the normal documents and proofs you would submit will not break the ice. There can be some alternative ways to provide your application the necessary fillip so it gets approved.
Lenders may not be forthcoming with such strategies or tips. You can get these secrets when you probe.
Something as simple as applying for a loan jointly, with your earning spouse or some other earning member in the family, can get the loan accepted.