A loan application is judged and approved based on all the following underlying criteria and a few others in addition: Trust or Credit Worthiness, Soundness of Reasoning/Good Judgment, Good Health and a Hardy Disposition, to mention a few.
3. Good Health is another important factor which relates to how viable a loan is in the hand or trust of the borrower.
No lender under any normal or abnormal circumstance will endeavor to issue a loan to an individual or group of entities (association, organization, group, conglomerate, consortium or government) where it is understood or perceived that the loan applied for may never get repaid.
4. Hardy Disposition is a coined or adopted term for people with the ‘tenacity of a bulldog’- or a never give up attitude in the very face of tough challenges or perplexing situation which might make the loan repayment an impossible undertaking.
Every arsenal and wit at their disposal is utilized in recouping/realizing the loan (plus interest charged in most cases) when the need, set goal or objective for taking the loan is achieved and/or realized.
WHY APPLY FOR A LOAN?
A loan is a way out of a temporal financial difficulty or financial handicap.
Applying for a loan arises out of a desire and need to execute a conceived idea, plan, a line of action or course of events leading to achievement of the goal (that which was conceived or intended).
Funding a project or contract, pay tuition and college fees, purchase property and estate, offset some important payments such as hospital or medical bills, utilities and welfare bills, mortgage, purchase new equipment, community and social development projects, and a host of others are some reasons why a loan is applied for.
…to be continued