Getting a bank loan approved is not the easiest process. Due to the recent economic troubles experienced in Kenya, lenders are demanding for a lot more in a loan applicant hence becoming stricter. While there are few key areas lenders will be focusing on, it is important that are ready to present the perfect, complete package for review if you are hoping to get approved.
1. Understand your choices
Before heading to your bank, first check out the loan packages they offer online and what the competitors are offering. You need to understand the type of loan you are looking for, the terms you can reasonably afford, and your goal for paying the loan as fast as you can. If you are looking for a specific type of loan make sure you get the best deal for you. There may be many loan offers available for you, but check out the fine print before going forward.
2. Ask questions
When you identify the loan package that interests you, contact the bank directly to find out the requirements that they need from you for the loan eligibility. You may need to make an appointment in person so as to discuss the materials, documents and timelines required to get started on the approval process. Different banks in Kenya have different requirements and it is important for you to know what they are beforehand so you can be well prepared.
3. Establish your limitations
When pursuing a loan, you should already be aware of credit history and current score. The bank will tell you the range of credit scores required for loan approval. Plan ahead and request for a copy of your history and score several weeks before you application. Check your credit history for accuracy and give yourself time to correct any errors in your history report. Lenders in Kenya today rely heavily on your past usage of credit. If there are any mistakes on your report, you may end up with a lower score which in turn hurt your approval chances. Take into account your financial limitations as you plan for a loan. Apply for the loan based on your financial capabilities to make repayments you can afford.
4. Create a check list
Based on the information you get from the bank, it is advisable to create a checklist of the appropriate documents required for the loan application. It can take some time to get the documents you need from creditors, your employer, and other financial institutions. Incomplete applications can be cause for loan denial.
5. Have the right expectations
Applying for a loan in hurry is never a good idea. Loan officers have a certain process for approving a loan and getting you the money. During the process, remain in contact with them to discuss the sequence of events so that you have an idea on when to expect an answer. While some loans can be approved upfront, the details may take a few weeks to be known. You may also need to outline the reasoning behind the loan. The loan process can be frustrating and if the loan you applied is not approved, the lender may give you the specific reasoning behind the denial. It can be dangerous to your credit if you keep applying for any loan you think you can get. Too many applications may ruin your credit and obliterate your chances of securing one in future.