Methods on obtaining the loan
If you are considering contacting a financial institution or a finance company to request a loan, you can do the simple 7C test to verify your chances of obtaining the loan. That is, check if you meet the requirements of the 7C method, an analysis method widely used by financial companies around the world to assess the financial risk of their customers.
1- Capacity reflects your real ability to repay the credit. You must consider all the sources of income available to pay the deadlines and also any other obligations that may affect your ability to repay.
2- Capital reflects its financial strength. It is your net assets in which assets and liabilities are taken into account. Capital can enable you to continue paying in the event one of your sources of income fails.
3- Character represents your personal integrity. To assess this, the lender examines certain personal information such as your home address, profession, marital status, pending charges and other details.
4- Collateral refers to all those forms of guarantee that increase the security of your ability to repay. An insurance policy, an investment or securities can be pledged. In the event that you are unable to pay, these assets can be converted into cash and the credit institution can recover a significant part of the loaned amount.
5- “Common sense” or common sense, here comes into play the experience, professionalism and intuition of the credit institution that on the observation of the individual draws up an opinion on the probability of a default situation occurring.
6- Conditions are all those external factors that could have an impact on your ability to repay the loan such as the economic and political conditions of the country in which you live or the company in which you work.
7- “Credit history”, or the history of credit, is based on the hypothesis that your previous behavior regarding the commitments of the past continues in the future. For example, if you have already requested The Borrowers that you have paid regularly, you are favored over those who have paid some late payments or even never asked for a loan in your life.