You may need extra funds from time to time to enhance your business growth or for personal purposes. A loan application provides the information to a lender so that they can decide whether to grant a loan. It can help everyone elevate the process along, and ensure that all the necessary prerequisites are all covered.
The Loan application is a document that state information about the borrower as a basis for the lender to decide to lend. For a business loan application it requires:
- Detailed business plan
- Income statement (profit and loss account),
- Balance sheet, and
- Cash flow statement.
In the loan application form, the applicant should specify:
- The loan amount
- The loan purpose
- The means and period of loan repayment
- Guarantees of the offered collateral for loan
For general consumer loans, banks use standard forms to fill by the applicants. A loan application is called a credit application that entails neither a pledge written by neither a loan candidate nor a commitment by the lender.
Some lenders require their borrower candidates to write a loan application letter to making sure of the loan candidate’s character. Before filling your personal loan application it is essential to take an account for several points, copies and edits the document and have a second person read it through for structure and means of purpose.
Consider the purpose of your loan. If the lender is requesting a standard loan application letter for your personal loan, he or she wants to know exactly the purpose of the loan usage. Lenders also want to be sure that illegitimate or illegal purposes not be done with the bank’s money. The purpose of the loan application should be the central part of your letter elaborating the detailed of goods and service might cost. Use a detailed and straightforward language and make sure to take each dollar to your attention details of your personal loan.
In your standard loan application letter, be sure to include when you expect to make the repayment of your loan. The lender wants you to have a commitment to a specified date on which the loan will be repaid including interest. Calculate your average monthly income after taxes and deduct all monthly expenses. Write your disposable income to the lender to show you have enough income to carry the loan for the period you promised.
Explain in the loan application letter a glimpse about yourself in your standard loan application letter for your personal loan. Provide positive characteristics about your career status, personal history and past financial history, including any previous debts. Some common things to include would be:
- Good records on past loan history,
- A particular employment period for a company or business,
- Volunteer work and
- Excellence in the academic field.