What Questions Do Lenders Ask for an Instant Loan
April 25, 2020
Exams are depressing, and so are its preparation. We all get cold feet thinking about answering all the grilling questions. But ultimately, we have to give our shot and that too, the best one. Because nobody wants to fail. Life is the most significant learning institution, and we are always ready for all its tough tests thrown at us, uninformed.
Whereas we have our family and close friends to deal with all our tests, resorting to outsiders helps a great deal to address all our personal struggles. And all of these struggles, in some way or the other, can be solved with finance. We need someone to lend us some instant cash, or even payday loan in Singapore, and we’re ready to go again. And what better than to borrow money online for its swift and hassle-free processing.
But then, it’s still another exam that you must clear. Before you get your loan approval, you have to answer several questions and fulfill all its criteria to get qualified. Let’s prepare it to give it all we have.
Questions asked by lenders for an instant loan.
When you have to borrow instant cash, the better you did your preparation, the faster you’ll have the funds transferred to your account. If your homework is incomplete, it is undoubtedly going to take more time than usual. For verification purposes payday lenders in Singapore will have many questions for you, and all you have to do is know them all beforehand.
What is your purpose in taking an instant loan?
This is generally the first question put by any moneylender to you. And the premise behind it is to check if you are taking out a loan for a legal purpose. All you have to do is tell them the real meaning of taking the loan. Say, you might be taking it for home renovation, debt consolidation, etc.
Once he has known the purpose, his next purpose of asking would kick in, and that is advising you the best loan option. Moneylenders also offer customized loans depending on the use of the loan.
What is your occupation?
Moneylenders are lending their money to you only for a specific period. And they need a surety that you’ll pay it back to them. So this will be one of their few questions during the consultation. Any moneylender would take the risk of lending his money to you only if you have a steady income source.
What is your credit score?
To borrow money, having a good credit-worthiness is imperative. And this status is checked by the lender after looking at your credit score. Before deciding to obtain an instant loan, knowing your credit score well in advance is a must. And hiding it would do more harm than good to you as the lender would dig it anyway. Moreover, if you are denied the loan after the process has been initiated, it would further lower your credit score. So, have it calculated for you the moment you have made up your mind of borrowing money.
How much loan do you require?
This is another thing you’ll be inquired about by the lender. Imagine going to the clothing store without knowing what you want to buy. If you don’t know how much loan you need, how much amount will be filled out in the first value column? Also, many lenders have their range i.e., the lowest and the highest amount they sanction as a loan. If you don’t fit in that range, there’s no point in wasting your time.
To calculate this amount, add up all the costs which your loan will take care of. Never borrow more than what you cannot afford because you have to bear the burden of repaying the loan and its interest. Also, choosing an amount lower than the calculated amount wouldn’t fulfill your purpose of taking financial help in hard times. So, work out the costs efficiently.
For how long do you require the funds?
Any kind of loan is always time-bound. So it is imperative to be specific about the tenure within which you’ll be paying off the loan along with its interest amount. To decide wisely, always consider the amount you can repay. The longer the period, the more interest you’ll incur. Stretching a loan with a meager amount of monthly installments will eventually cut your pocket deeper than otherwise. If your income is limited, opt for a loan amount for a short period chargeable at a low rate of interest.
How much can you repay monthly based on your income?
The amount you ultimately borrow from the lender will be the deciding factor of your monthly installments. And if you’ll be able to afford it, it will always be a concern of any moneylender. This makes sense because there is no point promising to do something you cannot do after all. Never try to have more than you can afford, as it could be the most significant financial mistake of your life. Be clear about numbers. Don’t forget to compare your monthly fixed obligation arising from the loan against your monthly income for better decision making.
Almost all of us have borrowed money in our lives. And when the source is the formal one like a moneylender, we have to be prepared to get grilled for all the thoughts and plans that brought us to the lender’s door. So, having a clear picture of the necessity of the loan is always a great idea. Knowing your income and expenditure beforehand would help you to understand how much more you can afford to have. It will stop you from going overboard.
Decide everything in your mind rationally as you’ll have to prove all your points to the moneylender -with backing to justify your borrowing act. And if you fail to convince him in your meeting, the chances are that you’ll never get another shot at it. So, be prepared well in advance.