Factors Considered when making a Loan Decision

Factors Considered when making a Loan Decision

Factors considered when making a loan Application

Factors that we consider when assessing a loan application determine your loan eligibility. We need to ensure that we are lending responsibly and by lending you funds we are not putting you under financial strain. You know your credit score matters when you apply for a loan, but that’s not the only factor we use.

Whether it’s a house related Loan, a car loan, or a personal loan, there’s a handful of criteria we use to decide whether to lend you money. Here are a few other things lenders consider when deciding to approve you for a loan:

  • A regular pattern of savings
  • The member’s previous loan repayment record
  • The purpose of the loan
  • The member’s ability to repay as agreed
  • A savings record is an advantage but lending decisions are based on ability to repay
  • Frequency of loan applications
  • Amount held in shares as security
  • Credit Reference Agency Checks
  • Honesty – If you lie, hide, or try to alter information to increase your chances of getting a loan, you risk being charged with fraud and may never find a lender who will work with you again. “Full disclosure” should be your mantra.

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