WHAT IS A LOAN?
A loan is a sum of money you apply for to enable you meet a need. This need requires money which you do not totally/completely/sufficiently posses nor have.
It is an available opportunity for financial assistance which is repaid as per the agreed terms and conditions for its grant.
WHO IS A LOAN FOR?
A loan application is judged and approved based on all the following underlying criteria and a few others in addition: Trust/Credit Worthiness, Soundness of Reasoning/Good Judgment, Good Health and a Hardy Disposition, to mention a few.
1. Trust/Credit Worthiness simply put is the remote possibility/chance that the loan applied for (money borrowed) to meet any need will be repaid as at when due.
“As at when due” in this explanation connotes a mutual agreement between the ‘lender’ and ‘borrower’ out of an understanding that has a time frame attached to it for the repayment of such a loan.
2. Soundness of Reasoning/Good Judgment basically applies to the borrower (person or individual applying for a loan).
Much as you will not readily give a lunatic (mad/insane person) applying for a loan the benefit of a doubt let alone a second chance, loan application is a subject of consideration for people with sound reasoning and supposed good judgment (however misinformed this line of thought/reasoning proves to be at the end of the loan expiration notwithstanding).
Lending institutions nowadays deploy every tact and precaution when any application for a loan is to be considered and processed. It may either be approved or rejected.
…to be continued