Your Status Decides Your Eligibility For Loan
People find that banks often turn down their loan applications citing reasons like insufficient documents and non-eligibility
. Every bank has its own set of rules and eligibility criteria for granting loans. These rules are often stringent and applied uniformly to all categories of borrowers. Dejected with the callous treatment, people feel the need to approach the private loan services providers for personal or business loans.
Of course, private lenders also abide by their respective rules but they apply them flexibly on case-to-case basis. Generally, they look into the borrowers status to decide on their loan entitlement, interest rates and documentation. As long as the borrowers status will ensure them of regular repayments, private lenders are flexible in applying the rules. Your chances of loan approval are better to bleak as per the descending order of the categories as explained below.
Employed: those in full-time steady jobs or unbroken employment stand a good chance of getting personal loans. Even part-time and contract workers can get loans, provided they corroborate their application with proof of regular income. Loans for employed people are the easiest to avail of, as lenders believe them to be less risky compared to other categories of applicants. That is why employed people are the major applicants for cash loan and payday loans.
Self-employed: banks are often wary of lending to self-employed business people and freelancers, as they think they have irregular earnings. Their loan applications often lack the number of documents an employed person would be able to produce. This does not mean their chances of getting a loan are bleak. They can still approach private lenders with copies of tax assessment or VAT returns, or failing which, their accountants letter certifying their income. Many lenders offer small business loan services as a distinct part of their overall services.
Retired: a retired person generally has somewhat little chance of getting a loan. Banks may reject their applications but many private lenders are more than willing to help them with a loan, based on the income proof like pension statements.
Retired: a retired person generally has somewhat little chance of getting a loan. Banks may reject their applications but many private lenders are more than willing to help them with a loan, based on the income proof like pension statements.
by: Finanxo
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