It is not easy to get a bank loan approved. They follow strict guidelines and expect more from a loan applicant. It is important that a borrower present a complete package for bank review to get a loan approval.
Loan Solutions Philippines helps in matching borrowers to lenders and provide easy terms for loan repayment. As an emerging financial services company in the Philippines, it endeavors to help Filipinos avail of financial help through various financial institutions, including banks. We present you with some tips on how to get your bank loan approved and some of the mistakes you should avoid.
Tip #1: Learn more about your options
It is important to know things beforehand. Go online and check out the loan packages offered by your bank and what options are available from their competitors. You need to know what kind of loan you are looking for, the affordable terms of payment and likewise, how you are going to pay off that loan in the shortest time possible to avail of lower interest rates.
Depending on what type of bank loan you are aiming for, be sure that you know what deal will work best for you before you go to the bank. Be sure to also read the fine print, as this part is where you will find the intricate details involved in each type of loan. One way to avoid loan denial is to apply for the right type of loan that matches your need. Do not apply for a long-term loan when your need is for a short-term one. In the same token, if you want a long-term loan, such as a business loan, for example, then make sure that you have sound plan for your business, how the loan will affect your business and how you are going to repay the loan.
Tip #2: List down your questions
If you find the loan package that interests you, sit down for a while and make a list of the questions you would like to ask before getting in touch with the bank. You need to find out the loan eligibility requirements. Make a personal appointment so you could learn all the documents you need to submit, any other requirements the bank might ask for and the timeline you have before the approval process starts. Keep in mind that not all bank requirements are the same.
Tip #3: Know what limitations you have
Keep in mind that your current credit score and your credit history will pay a big role in a bank loan approval. Do not ignore this portion because this is a crucial thing for banks. As much as they want to give you a loan, they also want the assurance that they get their money back, with interest. You should also be aware that the bank should tell you the credit score range they require before they approve a loan. If would be good if you could secure a copy of your credit history before you apply for a bank loan. Likewise make sure that you have analyzed your financial situation and apply only for a loan that you can afford to pay without draining your resources.
Tip #4: Make a checklist
There are many required documents that you have to submit to the bank. Give yourself enough time to secure everything. See to it that you do not miss out on any of the requirements as incomplete document submission can lead to the denial of your loan application.
Tip #5: Expect to wait
Loan processing is a lengthy process. There is a specific protocol that loan officers follow. What you can do is discuss the process so you know what to expect. Check when you can make a follow up on your loan approval. Be prepared likewise to answer questions about where you will use the money.
Avoid doing things in a rush. Loan application approval depends on trust as well. Know your banker and allow the bank to get to know you. If you are doing good business with them, it is easier to apply for a loan and get loan approval. So do not wait too long to have a face-to-face relationship with your bank.