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What is a loan?
A loan is a sum of money borrowed from a lender, typically a bank, credit union, or financial institution, with the agreement to repay it over time with interest.
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How do I qualify for a loan?
Your credit score and history.
Income and employment status.
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What documents are required to apply for a loan?
Proof of identity (e.g., passport, driver’s license).
Proof of income (e.g., pay stubs, tax returns).
Bank statements.
Proof of address (e.g., utility bills)
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Can I apply for a loan with a bad credit score?
Yes, but you may face higher interest rates or stricter terms. Consider lenders specializing in bad credit loans.
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What is the loan tenure?
The loan tenure is the duration you have to repay the loan, which can range from a few months to 30 years, depending on the loan type.
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What is an EMI?
EMI (Equated Monthly Installment) is the fixed monthly payment made to repay the loan, including principal and interest.
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Can I repay a loan early?
Yes, but some loans may have prepayment penalties. Check your loan agreement for details.
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What happens if I miss a loan payment?
Late fees may apply.
Persistent non-payment could lead to default or legal action
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What are common loan-related fees?
Processing fees
Late payment fees
Prepayment or foreclosure charges
Origination fees
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How can I check my loan balance?
Most lenders provide online portals or apps where you can view your loan balance, payment history, and due dates.
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Can I get a loan without a job?
It’s possible if you have other sources of income, such as investments, rental income, or a guarantor/co-signer.
