When applying for loans, consumers usually count on approval. But sometimes the creditor may refuse, and even do it without explaining the reasons. Is it possible to find such a lender who will give 100 percent approval for a cash loan and how to get a loan for one hundred percent? Let’s try to figure it out.
What structures are engaged in lending to the population?
Both organizations and individuals can give out money for use at interest. It is worth noting immediately that the discussion below will deal only with legal entities, since private financial relations have an excessively high degree of risk and should be considered only as the last thing. Read about financial regulations in the Philippines here http://www.bsp.gov.ph/regulations/regulations.asp So, the following institutions can lend to an individual:
- Banks are large financial institutions that specialize not only on lending and arranging deposits, but also in foreign exchange transactions and the maintenance of accounts of various companies. Such organizations rather meticulously upset potential debtors and a 100% loan approval will not be available here;
- Pawn shops – institutions that provide a loan secured by valuable movable property, which can be sold without problems in case the borrower refuses to return the money. Here, taking a loan with 100 approval is not difficult if the pledge meets the requirements;
- Microfinance organizations are small companies specializing in the provision of microcredit and in some cases, processing and securing deposits. The narrow specialization of the company and the simplified management scheme make it possible to give non-credit approval immediately if the client meets the requirements.
In general terms, their activities in the issuance of loans is carried out on a single template.
How does the loan mechanism work?
A loan is the provision of cash to a borrower for a fee (interest). From Latin, this word is translated as “trust”, which indicates the need for the client and the lender of such qualities as decency, honesty and sense of duty. Over time, credit relations evolved and developed, now they are already an integral part of the modern financial world. Financial institutions in some countries may even be suspicious of citizens who have never taken loans and do not have a credit history. The loan registration procedure itself is not very complicated and consists of several steps:
- Customer’s appeal to the lender. At this stage, the potential borrower informs the lender about his intention to take a loan, its amount, and also sometimes provides some guarantees that insure (partially or completely) the risks of non-repayment of the loan;
- Consideration of the application. The institution reviews the information and documents provided and decides on the approval of the transaction (the following steps are carried out only in case of a positive decision);
- The conclusion of an agreement or contract that governs the relations of the parties and the procedure for the return of funds. At this stage, the client decides whether such cooperation is suitable for him;
- Transfer of funds. This can be done in various ways, depending on the conditions of the transaction;
- Repayment of debt – the return by the borrower of the money received in the manner and amount established by the contract;
- Closing a deal is the termination of a contract due to the complete fulfillment of all its conditions.
Each stage has its own characteristics, some of which have an influence on whether this loan will receive 100 percent approval.