- Personal Finance»
- Banks, S&L's, Credit Unions
How to Get Approved for a Bank Loan Quickly
Getting a Loan is Simple
People are anxious unnecessarily when they approach a bank for a loan. This is really unnecessary. The advancement in technology has made it possible to apply for a loan simple. However there are some things you need to remember while applying for a bank loan.
Do you need a loan?
Tips to Get Loan Approved Quickly
Here are some tips on how to get your bank loan approved quickly.
If You Want a Loan, Apply
Most of the people fail to get a loan just because they do not ask for it. Please remember, banks exit to provide loans. They get your interest and you get money when it is necessary for you; it is a win-win situation. So if you need money, you definitely need not hesitate to approach a bank for a loan.
Maintain a Good Credit Score
Banks and other financial institutions prefer customers with clean financial habits. Your credit score is a reflection of your financial health. Whether you pay your EMIs on time or default can be easily checked through your credit report, which is maintained by different bureaus. If your credit rating is high, your loan will be approved quickly.
Read Terms and Conditions
It is advisable to take loan from a bank recognized by the government. Also check the interest rates and other terms before signing on the dotted line. Because once you sign on the dotted line, you are committing yourself to the bank's terms and conditions. Loan officers will be there to help you; but it is always advisable to read through the terms and conditions.
Take Loan from a Bank Recognized by the Government
This book helps you raise money for your business. Author Boomy Tokan has helped businesses of various kinds raise the money they need.
Find the Right Bank
If you are taking a personal loan, you may approach any reputable bank. However, if you are taking a loan for your business, it is advisable to approach a bank that is specialized in providing financial assistance to businesses in your industry.
Source of Income
Your loan is more likely to be approved if you have a regular source of income. Banks, all over the world, verify the source of income of the applicant. After all, they would want their loans repaid.
Preparedness is the key to success while going for a loan. You need to convince the bank that your loan would be a low-risk proposition to them. If the bank is convinced, your job is done. It is very important to have all the relevant documents ready.
If you are applying as an individual, you may need filled-in loan application, proofs of identity and address, and proof of income. If you are applying for your business, you may need your business' financial statements along with the loan application. It is important to have a covering letter.
Let Your Documents Be Neat and Legible
It is advisable to ensure that your documents are neat and legible. Be well organized. This go a long way in avoiding confusion. Type the documents where ever possible. Hand written stuff looks unprofessional.
This informative book helps you identify what lending channel, what loan product, and what price point truly fits your need.
Be Prepared for Questions
It is very important to be well-informed. Anticipate questions and be ready with your responses. You need to exude confidence when you interact with the bank's representative. You are not going there as a beggar. It is a professional transaction for mutual benefit.
You can expect usual questions like "How much money do you need?", "How do you intend to invest it?", "How do you intend to repay?", "What will you do if your loan is not approved?", etc. It is definitely a good idea to be prepared.
Be Confident and Humble
Never ask for a loan in an apologetic tone. Remove negativity and be confident. If you lack confidence, the bank will have doubts on your ability to repay the loan. This may result in rejection.
You need to present yourself as someone who can repay the loan. Speak confidently about your business. Explain how you intend to invest the money profitably. Carry brochures, ads and relevant material about your business while visiting the bank.
While it is important to be confident, it is equally important to avoid bragging. You need to be confident and humble. Bankers do not appreciate unsubstantiated, loud and broad statements. They need data. Avoid including false information in your application. Bankers verify all the information you would have provided.
Do Not Push
Submit the documents and wait for the banks turn around time. Do not push the officers for quick approval. Avoid bribing your way through. It is advisable to have a referral. The person should have a good standing in the society. It will be great if the person referring you is a good customer of the bank.
Speaking About Risks
While discussing your loan, bankers may ask you about the risks involved in your business. They would want to know how you intend to manage them. Never tell them that there are no risks.
Speak About Your Plan to Handle Risks
This would be a lie because any business will have an element of risk. If you tell that you do not have any plans to handle risks, your loan application is more likely to be rejected. You need to have a risk management strategy in place and you need to communicate the same to the bank.
You Can Get Loan
Getting a loan is a challenge. However, if you remember the above-mentioned tips, getting a loan will be a cake walk.
Banks Offer an Array of Various Retail Loan Products
Know What to Expect
Have you ever applied for a loan?
Especially if you're over 40, shortening the term of your loan to pay it off sooner could make you mortgage-free in retirement.— Barbara Corcoran