Please enable JavaScript.
Coggle requires JavaScript to display documents.
What you need to apply for a loan - Coggle Diagram
What you need to apply for a loan
credit Rating/Credit Worthiness
having a good credit score -you may improve your credit score by paying off loans early, and visa versa, if you pay off your loans late, your credit score can come down.
Banks may not give you a loan if your credit rating is low.
Before applying for a loan
Before you apply for a loan, there are some things you need to consider, and some questions you must ask yourself
These are some of the questions that you should ask yourself:
How much money do I need to borrow?
What can I afford to pay back each week or month?
How long do I have to repay the money?
Where can I get the best rates of interest?
You will need to fill out a LOAN APPLICATION FORM and provide the following information
Residential Details
your address; whether you rent or have a mortgage.
Personal Details
name,address, date of birth etc. A person under 18 cannot borrow money from a financial institution.
Employment Details
you will be asked for your most recent payslips to see how much you earn. You may also need to provide and employment detail summary, which shows your annual earning for the last year.
Savings Record
Lenders like to see a history of saving.
Borrowing History
Lenders want to know if you have other debts and like evidence that you have repaid previous loans on time and in full.
Purpose of the loan
you may have to provide details and costings, for example if you are building a house, carrying out home improvements or buying a car. If a loan is taken out by more than one person, each person will have to provide the above information.