Steps of money lending

A money lending loan is a short-term, high-interest loan (also known as credit). One of the most convenient ways to borrow money is through a moneylender. Policy refers to any action or procedure that is based on or considered to be prudent or expedient. The policy and guidelines adopted by a bank to make the lending process systematic and methodical are referred to as bank lending policy. Banks deal with other people’s money and lend the funds borrowed from depositors.Click here to become good at money lending in Chinatown. Here are the steps below:

1. Identifying potential loan customers

The majority of loans to individuals are the result of a direct request from a customer who approaches a member of the lender’s staff and requests that they fill out a loan application. Business loan requests, on the other hand, frequently arise from contacts made by loan officers and sales representatives while soliciting new accounts from firms operating in the lender’s market area.

2. Assessing the purpose of a prospective customer

When a customer decides to apply for a loan, they usually have an interview with a loan officer where they can explain their credit needs. That interview is important because it allows the loan officer to assess the customer’s personality and sincerity of purpose.

3. Assessing a prospective customer’s credit history

A loan officer will frequently pay a site visit to assess the customer’s location and property condition, as well as to clarify questions. If everything looks good at this point, the customer is asked to submit several important documents that the lender will need to fully evaluate the loan request.

4. Considering loan collateral and signing the loan agreement

Assume the loan committee grants the customer’s request. In that case, the loan officer or credit committee will typically conduct a background check on the property or other assets to be pledged as collateral. As it is very important for the signing up of a loan agreement.

5. Monitoring loan agreement compliance and other customer service requirements

The new agreement must be continuously monitored to ensure that the loan terms are followed and that all required principal and interest payments are made on time. For larger commercial credits, the loan officer will visit the customer’s business regularly to check on the firm’s progress and see what other services the customer may require.

Therefore now you would have known, the steps of money lending. It would be easier for you to lend money by considering these facts.