The current economic landscape has placed hundreds of thousands of people in harsh financial conditions, impacted by the current cost-of-living crisis. This may affect their ability to obtain financial support, mainly via loans.
There are 5 key things lenders will consider when determining whether to give you a loan and what the amount may be.
Ability To Repay The Loan:
A lender will check that the borrower has complied with previous repayment obligations. They will also enquire into whether there are other pending loans that may prevent the payee from making repayments.
Security For The Loan
The lender will require security for the loan they provide to ensure that in the case that the borrower is unable to repay them, they can acquire some money from their investment.
A lender will regard continuous employment highly. A borrower who has been working for a consistent period is more likely to be offered a loan.
Although this may not play a significant role, a lender may ask the borrower personal questions to determine whether they are suitable to provide a loan to.
A lender may consider the economic conditions when the loan is being given (although this may be more applicable to businesses).
If you find yourself in a situation or predicament involving a loan, you may want to speak with your lender or with a licensed professional who specialises in your loan type, such as a mortgage broker).