You have not yet applied for a loan , but the time has come for you to consider the idea and stop at a bank or loan company from looking for the financial resources you need.
You’ve heard different stories about how to approve loans , but in general, all stories end up there whether the narrator of the story has been approved or not.
And who approves the loans in fact?
Every bank or loan institution is like a living organism or as a small family in which each employee has his / her specific duties.
If you now go to a bank you choose and want to apply for a loan, a loan consultant will meet you first. His job is to listen to you and give you professional advice on what your loan options are and guide you what documents to collect before claiming your loan.
Once you have consulted and are already more prepared, you will meet a loan inspector. His job is to prepare your documents for the requested loan before submitting them for consideration. While you are with the loan inspector, he will look at your income, calculate if you are loaned, you will have enough money to repay it and meet your monthly needs, require a note of income from your work, information about the spouse’s income, the age of your children, whether you have your own home, a car, how long you are on a permanent contract, and so on.
After you have prepared all the necessary documents together with you, the loan inspector will pass them on to the next level, or else they will pass them for approval, and you will say that you have to wait a while to find out what the result is.
And here comes the interesting, because usually after the loan consultant accepts your documents, you do not know who approves the loans .
We’ll lift the curtain very lightly to find out how the loan spell is taking place.
We’ve got to where the loan inspector tells you to wait for a score. He tells you this because your papers go to a micro-loaning specialist who needs some time to process the information you have submitted in your loan application.
It is the responsibility of the microloan specialist to first look up your loan file in the loan Register to make sure that it is clean and that you have no untapped loans or overdue loan contributions to this or any other bank or loan company.
Will also pay attention to whether you have other loans that you are currently paying . If everything goes wrong, it will once again verify the reliability of the data, and finally (but not least, it will comply with the Bank’s policy) and will make a final decision on whether or not to approve your loan.
Sometimes it happens, although everything in your documents is fine, a loan for the desired amount not to be released, but the bank to offer you an alternative. This happens if the check reveals that if you are given the loan you want after paying the monthly installments you will not have enough money to make the month normally.
Each banking institution has its own internal rules and requirements on how much the minimum amount of the total income a household must have. In such cases, the bank may offer you to apply for a smaller loan in order to have a greater chance of being approved.
You know who approves the loans in the banks. And who cares about this in loan companies?
Although the application and approval of a loan by a loan company is much faster and the procedure here is the same. The difference with loan companies is that the loans they grant are unsecured for small amounts, and the check and approval of micro-loan specialists does not take so much time.
But if you think there are no such checks, lie. Here, as in banks, there are loan inspectors who process your loan documents, there are also specialists who carry out an investigation, calculate all the risks and make the final decision.
How to get better chances of approval?
Make sure your loan file is all right.
This is the most important thing that loan specialists who deal with loan approval are paying attention to. And before you think anything, we will tell you that it does not matter whether you are applying for a loan from a bank or a loan company – do you have a bad loan file you can not hide it because all financial institutions have access from the BNB database , where the information from the loan Register is stored.
Do not give false information
It often happens in attempting to make the desired loan, the borrowers trying to lie about their income by overstating them. Do not do it too, because the truth always comes out and the result will not be in your favor.
Judge yourself well and do not go alone
This means not looking for loan at an amount you even know that you will be unable to service.
Apply for a loan only when you really need it. If you need a smaller amount, the better option is to contact a loan company, and if you need a larger amount to a bank.
Complete your application carefully because it often happens that a loan is not approved simply because the documents are not filled in correctly or the required information is not fully collected and applied when submitting the application for loan .
When does the loan approval become faster?
In fact, there is a way you can not wait for approval for the bank so long and you do not wait for approval by a loan company. How so? If you are a trusted payer and have a bank loan or a fast loan, and apply again in the same bank or loan organization over time, you can take advantage of a loyal customer preference. In such cases, loan institutions carry out the leniency check and sometimes they even tell you that you have loan approval if you choose to apply for it.
However, you can only benefit from these preferences if you are a loyal and honest client and, as mentioned earlier , your loan file remains clean.