- May 30, 2020
Usually, the borrowers have many questions in their mind.
- How to borrow funds;
- Where to apply for the loans; or
- Which are the obligations to fulfil are some of them?
Here we are going to discuss what loans have the expectations from the borrowers.
You may feel surprised to read this, but this is crucial to remove any doubt and to ensure sincerity from the borrowers.
Before coming on to those questions, we feel mandatory to discuss something about the relationship between the lending product and the borrower. It is summarised in the following pointers:
|Relationship Between Loan and Borrower|
|Loans have to be framed in such a manner where the borrowers can seek fulfilment of their financial needs;||Borrowers have to be sincere in following the lending procedure. They should not hide anything during the process.|
|The terms and conditions have to be suitable to the borrowers’ repayment capacity;||Borrowers have to ensure primarily how they will repay the loan.|
|The loan obligations should be as such that borrowers can follow without putting any extra burden on to their finances;||Borrowers must be well prepared to complete all the pre-requisites necessary for the procedure.|
Now we have briefed the relationship between the funding product and the funding aspirant. Let us look at the questions that personal loans can put in front of the borrowers.
Q.No.1 = Are borrowers ready to be eligible for loans?
The first question is related to eligibility. However, a crucial thing to mention here is that these days’, qualifying for the loans has become more accessible. Still, borrowers have to qualify, and thus, it becomes mandatory for them to look for each qualifying condition and try to complete it.
Make sure you are an earning person because, in the end, you have to repay the loan. Besides that, if you are less than 18 years of age, then try to avoid applying on your own. Instead, ask your parents to approach the lender and bring funds for your needs.
These are the pre-conditions, although not mandatory, but crucial to increase the loan approval chances.
Q.No.2 = Borrowers should have a guarantor or not?
Guarantee of a reliable person or the collateral of equal value assures the lender that the repayment will be made within the given schedule. It will be better for the borrowers’ point of view that they arrange a guarantor or any asset to strengthen their chances of loan approval.
One more thing vital here is that these obligations are not mandatory nowadays and thanks to the direct lending marketplace. Applications are accepted without these conditions, but the interest rates may go to the higher digits.
Q.No.3 = Isn’t it a good credit score favour borrowers’ chances?
Personal loans can also ask a borrower that why they do not have the good credit score. As a borrower, you must have the answer to this question. It is not difficult to answer at all.
Circumstances will not remain the same all the time. They do change; sometimes they suit but sometimes not to the borrowers. Therefore, they have to bear the bad or very poor credit score with not having their faults.
If the loan terms are according to their comfort, borrowers can make efforts to improve their credit scores and bring their name into the good credit people.
Q.No.4 = What is the guarantee of borrowers’ genuineness?
Loans may also put the question on the financial credibility of the borrowers, who are not regular in their professional life. Here, we are talking about unemployed people. How can they assure the lender about the repayments?
If not the full-time job, the loan applicants can give a guarantee of timely repayment with their part-time income. The direct lenders in Ireland do not have any hesitation in accepting their loan applications if they are earning a sufficient part-time income.
Q.No.5 = Are borrowers going to use the loans for right purposes?
Loans can also ask about the purposes of the borrowers for availing them. Lenders have no indecision in providing the funds, but the applicants have to use the money for the right financial purposes.
For instance, you have applied for the loans to submit the university fees, but after borrowing the funds, you use them to give a party to your friends. This practice is indeed wrong, and it should not be done at any cost.
Use the loans for the actual financial needs and bring stability to your finances.
Personal loans are perhaps the best funding sources to help you in tight financial circumstances. Lenders are providing them on more comfortable, or we should say flexible terms, but borrowers have the responsibilities too.
They have to prepare themselves to apply in the right way and use the taken money in the relevant direction that can guarantee a financial constancy.