Alexandoy
VIP Contributor
The title are the 2 basic requirements for a bank loan applicant. The capacity to pay is easy to determine. If the applicant has a job or business the tax returns is submitted as proof of the capacity to pay. The certificate of employment is sometimes required as supporting document.
But the willingness to pay is tricky. The credit investigator can check for the credit records although only the credit card users are in the database. When the applicant has a delinquent loan to a private lender then that cannot be known by the bank.
The collateral is required depending on the amount of loan which are usually the big loans for buying a car or a house. For borrowers of a personal loan the collateral is not required anymore if the amount does not exceed the maximum (it used to be $600).
But the willingness to pay is tricky. The credit investigator can check for the credit records although only the credit card users are in the database. When the applicant has a delinquent loan to a private lender then that cannot be known by the bank.
The collateral is required depending on the amount of loan which are usually the big loans for buying a car or a house. For borrowers of a personal loan the collateral is not required anymore if the amount does not exceed the maximum (it used to be $600).
