Getting a bank loan is not as easy as it sounds. Basically, you need to possess certain things that will make you eligible to obtain a bank loan. Also, the terms and conditions of the loan are very rigid. However, there are some secrets to get your bank to give you a loan. Following these secrets will ensure that your loan application is seamless and stress-free.
What are the Types of Loans?
Basically, there are two types of loans. All other loans usually fall into any of these categories. They include secured and unsecured personal loans. With unsecured loans, you do not need any collateral to obtain them. On the other hand, you need collateral to obtain a secured loan. Remember that if you obtain a secured loan, your home or car as collateral, you are at risk of losing these assets if you are unable to pay back your loans.
What are the secrets to get your bank to give you a loan?
Here are some of the top secrets to get your bank to give you a loan:
1. Make sure you meet the eligibility criteria
Before you even think of applying for a bank loan, you need to consider if you meet the eligibility criteria. Basically, the age limit for applying for a bank loan in Nigeria is 18 years. Also, you need to be currently working and earning a salary and must not have any existing default on loans.
2. Assess your credit score
If you’re starting the loan application for the first time, commence by getting your credit score. You can request your credit score from your bank. Ensure that you have a good lending history because your bank will review your lending history before considering giving you a loan.Â
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3. Check your lending history
There is no other alternative. Basically, the best way you can ensure that you maintain a good credit history is to pay off your debts timely. Any delay you make in repaying your debt will negatively impact your credit history.
4. Ensure that your bank offers personal loans
To obtain a personal loan from a bank, you have to be an existing customer with a good credit score. However, some banks still do not offer customers personal loans. Hence, you have to find out what kind of loan your bank offers.
5. Know your Net Worth
Your net worth will give you an idea of how much loan you can obtain from the bank. Basically, banks determine your risk level by assessing your assets and liabilities. You can calculate your net worth using this formula:
Assets (anything you own) – liabilities ( the debts you owe somebody) = Net worth.
Know that if your liabilities are greater than your assets, the bank is unlikely to give you a loan.
6. Stability is Important
Address and employment are two major ways banks check your stability. If you are off probation and have been with your employer for over three years, the bank will view you favourably. Also, if you can show the stability of residence for at least two years, you will still be viewed favourably.
7. Get your paperwork in order
One of the most demanding parts of obtaining a bank loan is the documentation. The documentation can be tough and very demanding. However, the type of paperwork varies depending on the kind of loan you want to apply for.
8. Know the terms and conditions of the loan
All loans have terms and conditions. Hence, you must read and learn about these terms and conditions and stick to them till the end. Ensure that you make timely payments and know the loan duration.
9. Plan to pay it back
Basically, once your loan application is successful, you have to map out a plan to pay it back. To make this step easy for you, ask yourself questions like:
a. How much money do you owe per month?
b. Do you plan to pay back the minimum amount required, or want to make extra payments and pay it off more quickly?
Also, try setting up automatic payments from your salary account. So once you receive your salary, one part of it will go into repaying your loan. Basically, this ensures that you do not miss a due date.
Bottom Line
The secrets to get your bank to give you a loan are put in place to ensure your loan application is seamless and stress-free. Following the tips above will guide you on how to go about obtaining a bank loan successfully. However, you need to take note of the most important thing, which is having a good credit score.
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