Hello, good people.
We are here to enlighten you with some of your info thirsts. Wholesome journey of life
couple of times we Need financial support for our different causes and needs. Hence we try for loans that help us with some relive. But we often got scared by our not knowing about things and laws. So here we go!
What is a loan!
The definition of a loan is the agreement of lending money with interest and a plan to repay it. An example of a loan is the agreement to give you money to buy a house.
A loan is a sum of money an individual or company borrows from a lender. It can be classified into three main categories, namely, unsecured and secured, conventional, and open-end and closed-end loans.
Secured means one that is backed by some form of collateral.
And unsecured means the opposite of it.
Conventional means mortgaging something for a cash amount.
And last but not least, the open-end has a prevalent example like credit cards. You can borrow up to your credit limits, but you cannot rebound it until you pay the borrowed one.
There are many other types in this significant type, such as
- Personal Loan
- Car loan
- Business loan
- Home loan
- Education loan
- Medical loan
- Gold Loan
- Entrepreneurship loan
- Start-Up loan
There are many on the list!
You can find them as matched over your needs and terms.
What is loan eligibility?
In a short sense,
Loan eligibility is the ability to pay off the borrowed money over a respective period.
And this clause differs from bank to bank, lender to lender, and also depends on loan types.
The most common requirements are written below,
- Must be a salaried person or Have a business
- If a student, then a guardian can be the loan taker.
- Age limit starts from 18 and ends in loan time. It must be lower than 60.
- Tin /LIC / Trade license / Tax Identification
- Non-mentally disabled.
- Women entrepreneurs should have more than 50% of collateral Then men.
These are the most common ones in the case of loans.
Loans and money lenders are harassing someone!
Isn’t this one of the familiar scenes in Daily life? So what it needs to check before you apply for a loan-
- You should be precise about your eligibility.
- There are many types of loans you should check what suits you more
- You should review the clauses before you take any step.
- Go for a lower interest rate; go to trusted owners and banks.
- Talk about hidden charges and processing fees.
- Always be truthful to the documents you are submitting. Any false information can drag you to court.
If everything is sorted, then let’s talk about the loan process.
Below are the stages that are critical components of the Loan Origination process:
1) Pre-Qualification Process :
2) Loan Application :
3) Application Processing :
4) Underwriting Process :
5) Credit Decision.
6) Quality Check.
7) Loan Funding.
(This may require very loan /Bank/Lenders)
Black and White side of Loans
⬜: Keep Control of the Company.
⬜: Bank Loan is Temporary.
⬜: Interest is Tax Deductible.
⬛: Tough to Qualify.
⬛: High-Interest Rates.
Well, we talked about nearly every aspect of your query. Did we miss anything? Comment us below; what more do you want to know!
Till then, stay safe!