the Loan Information

Introduction

A loan is a lump-sum money advanced to individuals and businesses by banks and other financial institutions and is repaid over a period of time in monthly installments. They charge an interest which is repaid together with the principal amount. It is important to be conversant with loan information such as the types of loans offered and the information and documents required when applying for a loan.

History

Loan services are offered by banks and other financial institutions to provide enough money to individuals and business to finance their personal and business activities, respectively. Taking a loan is a way of raising additional cash to cater for any cash-flow problems. It helps to raise lump-sum money which you cannot be able to save at once from your monthly income or which businesses cannot be able to raise from working capital.

Features

The loan information that you need to be aware of include the types of loans that banks offer. Types of loans are car loan, home loan, provident cash loan, military loan, pay-day loan or fast loan, bank over-draft as well and furniture loan. It is important to know the detailed information regarding each loan so as to choose the best loan that suit your needs.

If you want to buy a car, then the car loan is ideal for you. The bank gives you the money to purchase a car through an auto-dealer which you would pay back in monthly installments over a period of, say, five years. The monthly installments are affordable that such an arrangement would not financially stress your pocket. On the other hand, if you want to purchase a house, you can apply for a mortgage loan which is repaid over a period of normally twenty to thirty years.

When applying a loan, it is important to know the banks or financial institutions to deal with that are reputable.

The loan information that you need to have when applying for a loan is your personal details such as your full name and surname, residential address, gender, identity number as well as your age. This information is substantiated by physical copies of your identity document or passport and proof of address. Again, these financial institutions require your contract of employment and payslip or order to verify your source of income. They also require your monthly expenditure budget so as to ascertain if you can afford to pay back the loan.

Other loan information required includes your credit rating score and other loans that you are currently paying. In most cases, some information required will be particular to the type of loan you are applying for. If you are applying for a car loan, for example, the bank would require a purchase invoice from an auto-dealer showing the price and the details of the car.

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