Factors to consider before granting loan

[Mastergp]

Many people like collecting loan from either the bank or from friends for important purpose most times those problems are usually urgent, important or even unimportant to them but due to fact that they do not have any other means of making this money they seek loan from friends,

Most people like collecting loan from friends and relative they don't work hard to earn money what they like doing best is to get loan from others, still one need to bear in mind that is one thing to give out loan and it another thing to pay back the money we owe.
They are factor will need to consider before granting loan and they include the following:

Purpose of the loan:
The bank will want to know the purpose or reason why a customer will need loan.

Ability to pay back the loan:
The bank is also interested to know the financial capability of the customer to repay back the loan at expiration.

Credibility of the customer:
The commercial bank will study the credibility of the customer to determine his credit worthiness.

Source of income to repay the loan:
when the loan is given out, the bank is interested in knowing the source of income available to the customer to repay the loan including the interest.

 

[Augusta]

All your points are valid if you want to be a creditor that will not have issues getting your money from debtors then you should always take some points into consideration before lending out your money.

The thing is that people are always eager to get loans or money from people but paying back is always the issue, so you the creditor must take up some principles so that your money will be paid back on time

As you have stated we should always look at the credibility of the debtor if he or she is one person and that doesn't pay back other people's loan then it wouldn't make sense to lend such a person money.

aand again it is really good to find out how the debtor intends to pay back which is very important that the person have an asset or a collateral that you can sell to get back your money.

 

[CALVINDOL]

There are so many reasons and situations that could make an individual demand a loan as a financial assistance possibly from another or from a financial institution. Personally there are so many things an individual need to put into proper cross check in order to be sure or in order to increase his or her chances of being granted the loan in which he or she intends to ask for. The financial institution or the individual going to be the lender or the borrower is also going to make his or her own findings on the individual who he or she is giving the loan to. One of the reasons why bad and irrecoverable debts usually occur, is possibly because both the borrowee and the lender of the loan were absolutely ineffective in carrying out their findings which would have determined how possible the loan is to be recovered and to be paid in due time.

You have possibly mentioned all what are financial institutions should put into proper consideration when trying to issue a loan to a particular individual who possibly may need it for personal purposes of a business purposes.

 

[Etini]

Getting a loan puts a person under lots of pressure. You won't be able to sleep and rest. You would be stretched to overwork just to meet up with the loan repayment. I think only mega businesses should consider getting loans. Those ones have collateral that they can forfeit. And most of these loan agencies don't do their KYC well. Some marketers are only interested in the commission they would earn.

I once took a loan that I was not supposed to be given. The marketer was just interested in her commission, so she wrote a favorable report for me and they disbursed the funds. I struggled to pay back. I did finish. As I speak to you though, that company is no longer in existence. Loan companies should undertake due diligence to minimize the risk of incurring bad loans. Let the person show that he/she has sufficient means to payback.

 

[Shigobad2020]

There are a lot of ways in which we can get a loan to start our business or do a project depending on the amount of loan we want , and some of the loan might take a while before you get it because of the protocols and due process they need to follow before granting you a Loan you can get a loan from a loan shark which is the hardest way or getting a loan because youbare going to need a collateral and also need someone that will stand as a guarantor for you , and the interest of the loan will be higher than other type of loan .
Secondly is bank loan which is also somehow hard because they also need your statement of account and also a guarantor and also a collateral to stand in case you won't be able to pay back the money .
And lastly is the loan gotten from a friend or from a society which doesn't take you through stress before getting and sometimes there might even be any interest attached to it .