Top 5 Things to Do Before a Loan Application


We have all been here before, haven’t we?

Much as we love to fulfill all our dreams and strive hard to be able to literally, we all end up in a debt and inadvertently. Who even wants to become a debtor? But with rising inflation and the job market becoming more and more competitive, the cork is only getting tighter around your neck!

Applying and obtaining loans is no longer like Greek and Latin. Thanks to continuously having a shortfall, it has become a second nature to most of us to borrow loans. Here is a compendium of five important steps that you need to take before you decide to zero in on a lender.

I have been a satisfied borrower at Of course, you will need to try them to know how good they are.

  1. Your credit report is a mandatory document:

More things are said in your credit report than you think. For instance, it almost opens up a book about you in front of the lenders. If you have an outstanding credit balance with other institutions or have made late payments, there is a big chance that you are either denied the loan or that you are offered them at very high rates.

  1. Any discrepancy in the personal details will need to be corrected:

Before you approach the institution, you will need to check if your address, bank details etc is the same as you are applying with. Any changes made recently will need to be affected.

  1. Drawing up your repayment budget:

This is an important exercise and will help you identify the leakages in your normal month to month budget too. List all your financial commitments alongside your monthly income for the loan period to check how much money you can afford to repay to the lender.

  1. Everything printed cannot be believed:

Read extensively but do not believe everything that is there. It may sound paradoxical but what lenders advertise and what they offer to you can be as different as the ground and the sky because they have to factor in risks.

  1. Shop around but borrow wisely:

Compare the loans of different lenders but do not make the mistake of applying everywhere. It can show adversely in your credit reports.

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