How to Evaluate Borrowers?

[Suba]

Financial institutions, whether banks or non-banks, have procedures or ways of collecting money from the public, whether in the form of savings, investments, deposits, etc., then the bank or non-bank institution will look for and select borrowers.
whether it is worth giving a loan or not, this is the basic way banks process and manage funds to get returns in the form of interest to pay all their employees and run business operations smoothly so that banks and other financial institutions need to strictly select borrowers so as not to incur losses. So how do banks evaluate customers or borrowers?

 

[neku]

The banks will usually ask the borrower to provide a copy of their income tax returns where they have stated the income they have officially. Only people with sufficient income are considered eligible for loans.

 

[Suba]

The banks will usually ask the borrower to provide a copy of their income tax returns where they have stated the income they have officially. Only people with sufficient income are considered eligible for loans.

I agree with you, banks often ask for a copy of our income as an analysis of the financial condition of whether the borrower is able to pay the installments or not, and what our purpose is for borrowing the money.

 

[Starmix]

We can evaluate borrowers through their sincerity in paying their credits if on time or always on delay. If it occurs on delay oftentimes, it is best not to let the person borrrow again. the capital will be used up.

 

[Suba]

We can evaluate borrowers through their sincerity in paying their credits if on time or always on delay. If it occurs on delay oftentimes, it is best not to let the person borrrow again. the capital will be used up.

Not only will capital run out, but debt will arise, because bank capital is the savings of customers, which is one of the reasons why many banks carry out mergers. For this reason, the bank will also check the customer's credit score to see whether it is running smoothly or whether installments are often delayed.

 

[Starmix]

Not only will capital run out, but debt will arise, because bank capital is the savings of customers, which is one of the reasons why many banks carry out mergers. For this reason, the bank will also check the customer's credit score to see whether it is running smoothly or whether installments are often delayed.

That could be possible because a bank does a background check if the loan applicant is credible or not. Our good credit standing matters most during loan applications.

 

[Suba]

That could be possible because a bank does a background check if the loan applicant is credible or not. Our good credit standing matters most during loan applications.

A good borrower's reputation will make it easier for banks to approve credit. Apart from that, usually the bank will also investigate the borrower's current financial condition whether they are worthy of getting credit or not.

 

[Abdulhamid01]

Banks do this by making sure that the person has a stable source of income be it business or probably a government worker or a private owner of an investment and also the person must be a regular customer of the bank.

 

[Starmix]

A good borrower's reputation will make it easier for banks to approve credit. Apart from that, usually the bank will also investigate the borrower's current financial condition whether they are worthy of getting credit or not.

That is true, and the loan applicant must also submit collateral and a co-maker at least two people who also have a good job. It is not good to borrow money from a bank or any agency. There are many requirements and seems putting the person to shame.

 

[Suba]

That is true, and the loan applicant must also submit collateral and a co-maker at least two people who also have a good job. It is not good to borrow money from a bank or any agency. There are many requirements and seems putting the person to shame.

That is one of the important factors why we have to borrow money if we don't have a specific purpose, especially for commercial purposes and expanding our business. We don't always need credit collateral to take out a loan. There are many types of loans without collateral, but loan acceptance is smaller.

 

[Starmix]

That is one of the important factors why we have to borrow money if we don't have a specific purpose, especially for commercial purposes and expanding our business. We don't always need credit collateral to take out a loan. There are many types of loans without collateral, but loan acceptance is smaller.

When I was a new employee I kept on borrowing money from any lending agency because of exploitation from my co-workers but after to loans, I was brave enough to refuse to go with them to the agency. There is no reason for me to loan. I only wasted my money paying higher interest. I was young at that time and full of extravagance

 

[Suba]

When I was a new employee I kept on borrowing money from any lending agency because of exploitation from my co-workers but after to loans, I was brave enough to refuse to go with them to the agency. There is no reason for me to loan. I only wasted my money paying higher interest. I was young at that time and full of extravagance

That is the past that we can use as a lesson about how we lived in luxury, only wasting money and living full of debt. According to many people, the older you get, the wiser you are in managing your finances correctly or not.

 

[Starmix]

That is the past that we can use as a lesson about how we lived in luxury, only wasting money and living full of debt. According to many people, the older you get, the wiser you are in managing your finances correctly or not.

That is true but in my case, I only learned to live in frugality after I joined a forum like RIF I learned many things on RIF. It is the first forum site that I joined through the invitation of my friend. I am so thankful to him. I now live within my means.

 

[Augusta]

if they are workers then it good to look at their salary scale to know if they deserve such loan or you look at their balance sheet if it is a business

 

[Starmix]

We can evaluate the borrowers' capacity through their salary receipts. It is indicated there how much is the total gross and the net pay.