People in the world will not be able to fulfil their wishes without getting a loan from a vendor or financial institutions or bank. Many of the Indians will not be able to build their houses without buying loan from the financial institutions. But getting loan approval is not an easy process. Many people do not know the required details bank that take into consideration before approving a loan.
When you have a good credit score and the other one has the same credit score, they process in a different way to decide whether to approve a loan or not. Some banks have internal scores to determine whether the concerned person is eligible for the loan or not. Here are a few common things the bank or financial institution will consider before approving a loan.
1. Credit history:
Banks always prefer people who adapted clear financial habits. The credit score is the one that is used to identify the financial quality of a person. The different types of bureaus maintain the credit report. This credit report is used to check whether you pay your equated monthly instalment on time or you fail to pay the monthly instalments.
Generally, eight hundred consider being a very good score. The range between seven hundred and eight hundred is also a good score. The credit score is three hundred and below then your loan will get rejected. If you have a very good credit score, then your probability of getting a loan is very high and only a few checks will be done by financial institutions.
The financial institution usually prefer government employee, employees under PSU in Singapore, Those people who have a stable job have a higher priority for personal loans Singapore. Then comes the people work in different companies, doctors, engineer and the self-employment-based loans. People work in private companies and self-employed people will get the lowest score. Occupation is highly important because the capacity to repay the loans depends on the individual profession. Frequent switching of jobs by the borrower will create a negative impact. The application is treated equally since each sector has its own merits and demerits.
You are applying for a loan the age parameter also plays an important and crucial role. The people whose age ranges from thirty to fifty are highly important because they are considered to be the most stable persons in the world. They are financially stable and decent number of working hours to repay the loans. The people whose age is above sixty plays the worst role with regards to the financial institutions
4. Area/ Distance:
The distance and the area of the property while sanctioning the loan is the atypical factor that financial institution will take into considerations. If the property is within municipal limits or city limits, then the financial institution will prefer to sanction a loan. If the property is far from the branch location or the city in such cases the financial institution might not be willing to sanction the loan.
5. Work experience:
Some financial institutions concentrate on your work experience. They ask the question of how many years you have been working in this company or industry. This is because longer you serve you will be able to gain more points from the financial institutions. The most preferable people are the people who are more working for more than fifteen years. The least preferable case is the people who work only for three years or less than that.
6. Spouse’s income source:
Generally, the loan eligibility in a financial institution depends on your capability to repay the loan If your income is not sufficient the loans. There is an additional chance provided by the company that some financial institution agrees to consider your spouse’s income while applying for a loan.
7. Repayment period:
The financial institutions will prefer you only when you are eligible and capable of paying the loans in shorter periods. The financial institutions will give a maximum score only those people who chose the repayment period up to five years. This reduces to half when the loan repayment period is between ten to fifteen years. The lowest when the repayment period is more than fifteen years. You reduce your repayment period then you will get higher priority and chances of quicken the process of approving the loan.
8. Relationship with financial institutions:
The older the relationship of you with financial institutions the chances of approving a loan for you will be higher. The financial institution will value the relationship with their customers due to the familiarity with the financial past. The number of years of the relationship of you with the financial organisation is higher than higher the chances of approving when compared to the person having a smaller number of years of relationship. Several other important factors play an important role in approving a loan such as the purpose of the loan, surplus income and many more. The trustable of Singapore bank is important in case of approving a personal loan Singapore for you. Learn more about personal loan with EasyFind – Fast Cash loan.