Business & Community

Documents You Need To Submit For Loans Application

pplying for a loan requires a ton of paper works. And if it is your first time, the task is overwhelming and you don’t know where and how to start. Better to prepare as early as possible, even before you know which bank you are going to apply to since most of the requirements are the same. Gather as much as supporting documents as you can to prove your capability to repay.

Application Form

As soon as you determine which bank you are going to apply for a loan and which you are eligible and most likely to get the application approved, ask for an application form and make sure it is the correct one. This might sound minor, but there are applications for loans in hawthorn that may get rejected simply because the applicant used the wrong form. A business owner applying for a loan has a different application form and sets of requirements from that of an applicant who is an employee receiving a monthly salary. Usually, the application form also enlists other requirements that needed to be submitted.

Proof Of Financial Records

No bank would give you any loan if you could not prove that you are able to pay them back. Showing proofs of financial records such as pay slips for employees and income records for business owners. A proof that money is expected every month would determine if you would be able to pay the monthly minimum amount due should your loan be approved. Other sources of income like child support or from part time and freelance jobs could also be included.

Other Assets

If you have assets such as investments, life insurance, real estate and others, you could also present it especially if you are hoping to get approved for a loan of a significant amount. This is also a show of faith that if there is anything to happen with your monthly income, you still have assets to pay off your debt. Bank statements could also be included as supporting documents especially if you have savings that did not just show up overnight. If you borrowed money just so you could have a bank statement to show, it would look more dubious.

Credit History

This is the document that would really say it all with regards to your paying capability. If you have been a delinquent when it comes to paying your debts, this might turn off banks into lending you money. Once or twice delays or late payments might be overlooked but more than that would hurt your application. Consider other things that might hurt your credit history and if it could be fixed and remedied before you apply for the loan, do so.

Proof Of Identity / Residential Address

When you furnish proof of identity, make sure that you submit government issued identity cards such as passport or driver’s license. For proof of residential address, make sure that your whole home address is indicated in the document.

Some banks might require other documents and it is recommended that you inquire about these in the event that they are not listed in the application form or if there is something about the requirements that you do not understand.


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