Definition of Loan application
Loan application as the name suggests is an application for loan. When an individual wants to apply for loan either in bank or any other financial institution he is required to write an application apart from a loan form. The loan can either be personal or business. In both cases application, might be required.
Brief Explanation of Loan application
Most of the information is available on loan application form but sometimes additional information is required and requested by the lender. It is a very formal letter and hence the language and format should be strictly followed.
The letter or application is addressed to the Loan manager and the information may include
- the intend to take the loan,
- proving it is not for any illegal purpose,
- how the money would be spent,
- amount of money required,
- date on which the individual is agreeing to repay the loan along with interest
- if the loan is taken by any business then proper documentation can be submitted i.e. business details and nature, where the loan would be spent, no illegal activities are done in the business etc.
- it may also include the details of upper and responsible management.
- Experience of personals in the field and industry
- Their monthly salary
- Details of borrower permanent address along with proof