Loans Is Mortgage The Only Factor Bank Considers When Granting Loans?

[Good-Guy]

We all know that there are many people who take loans in order to deal with problems in their business. There are many people who borrow money so that they could invest more money into their business whereas there are several people who have been borrowing money in order to start a new business. Nevertheless, we mostly seek the help of a bank or a financial institution when it comes to borrowing loans. There are several factors that are responsible for getting our loans approved and mortgage is obviously one of the major factor that can influence a bank's decision when it comes to granting loans. However, do you believe that mortgages are the only factors that banks usually consider when approving or rejecting loans?

 

[Letlhogonolo]

in my country, its not just mortgage, but current stream of income, the type of employment, and many more items just to give as an example.

 

[Good luck]

It is not only mortgage that banks consider before giving loan.Things have really changed now,you can get loan from financial mea like using carbon and some other platforms.You will only need to submit some vital information about yourself and also drop some vital documents that can be used to track you down if you fail to pay back though it is with interest.

 

[Suba]

In my country, currently mortgages are mostly used for home ownership loans, for entrepreneurs both large, medium and small they have different platforms, for small and medium businesses they can apply for loans to banks without collateral. Micro, Small and Medium Business Loans are provided as a working capital or investment solution. By category, Micro <$7000, Small <$35000, Medium <$350000. Of course, this loan must meet the qualifications determined by the bank.

 

[Caramelle]

A mortgage is not the only way for a business to obtain loans from banks. Being a bank's depositor or account holder creates a business relationship between the bank and the business. A business can leverage the relationship with the bank in many ways. One is by securing a non-collateralized credit line with the bank. Once granted, the business can use that credit line to borrow money when needed. The loan is subject to interest but it is quite useful in funding big projects where the company can expect a return that is several times more than the interest that will be incurred on the loan.

A business may also use purchase orders or invoices as collateral to obtain funds from banks and other institutions. A firm may assign accounts receivable to obtain the needed funds. Either the bank or the business performs the collection process with or without the knowledge of the customer. Either way, the bank will usually hold a certain percentage of the invoice to cover its charges. For example, if the accounts receivable amount is $100,000, the financial institution may only grant 75% of the amount, or $75,000, and withhold the remaining 25% until the full invoice amount is collected from the customer.

 

[Token Academy]

Thanks for this article about Loans! 😀😀😀😀😀😀