There are five considerations that lenders evaluate when evaluating your loan application.


When applying for a mortgage, vehicle loan, or personal loan, you want to present your best case, but this can be challenging if you are unsure of what your lender is looking for. For easy processing, you can find the best licensed money lender in Philippines.

Although you may already be aware that banks and other financial institutions frequently examine your credit score when determining whether to cooperate with you, it’s not the only thing they take into account. Here are seven things you need to be informed about.

  1. The credit

Nearly all lenders check your credit score and report since it gives them information about how you manage borrowed money.A bad credit history indicates a high probability of default. This scares off many lenders since there’s a chance they won’t get the money they lent you back.

  1. Your earnings and employment history

The ability to repay the money you borrow is important to lenders. Therefore, they require proof of a sufficient and trustworthy source of income.The income requirements vary depending on how much you borrow, but generally speaking, if you borrow more money, lenders will require a greater salary to be confident that you can make the payments.

  1. Your debt-to-income ratio

Your income has a direct correlation to the debt-to-income ratio. This determines what percentage of your monthly income will go toward paying off your debt each month. Most mortgage lenders won’t accept you if your debt-to-income ratio is more than 43%, which means that your loan payments shouldn’t consume more than 43% of your income. Low debt to income ratios are preferred by lenders.

  1. Your collateral’s value

You agree to furnish the bank with security if you are unable to repay your loan payments.Secured loans frequently feature lower interest rates than unsecured loans since the bank has a way to recover its money if you default.

  1. Amount of the down payment

Some loans require a down payment, and the amount required depends on the size of your down payment. The down payment you make, which may be necessary for some loans, will have an impact on how much you must borrow. For example, if you pay more cash up front while buying a car, you won’t need to take out as much bank credit. In some cases, you might be able to get a loan with no down payment or a little down payment; however, if you go with this option, the interest rate on the loan will be higher.

Applying for loan has simple processing at a trusted money lending institute. Try it and get you financial issues resolved!


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