Home » Articles » Maximizing Loan Amounts

Maximizing Loan Amounts

Multiple financial institutions have setup various Terms and Conditions that determine how much loan you can get. As a loan holder, you must be aware of the factors that tend to limit loan amount and are an obstacle in maximizing loan amounts. As a borrower, you should also provide the right information as required by financial institutions.

Limitations for Maximizing Loan amounts

Lenders like banks and other financial institutions lay down certain rules or limitations that determine the amount of loan you can get. You can maximize your loan amount by knowing these rules setup by the lender. The rules are nothing but qualifying criteria, and if met, it can raise your chances to maximize your loan account. Some of the examples of these rules are stabilized profits where an underwriter estimates future profit of your business. This estimate plays an important role in determining the loan you can get from lender.

How to Maximize Your Loan Amount?

A financial institution follows pre-determined criteria for lending loans to the borrowers. To maximize your loan amount, you need to get an approval for your loan application. For meeting the lending criteria of the lender, you need to present right information regarding the following factors -

Amount required:

You must inform the lender about the amount of loan required and what will be your repayment term for the whole amount.

Purpose of loan:

The borrower is liable to inform the lender the purpose of borrowing loan, whether you are going to use the money for business or personal purpose. You can only maximize your loan amount if the lender is satisfied with your answer.

Collateral:

For maximizing loan amounts, you also need to back your loan amount by a collateral, usually an asset, in order to cover any risk. The lender can forfeit this collateral in case of non-payment of loan.

Business plans:

If you are borrowing the loan for business purpose, then you have to discuss you business plans with the lender. This includes answering questions regarding kind of business, market you serve in, and the management capabilities of your firm. If the lender is satisfied with your plans, then you can easily maximize your loan amount.

Financial Statements:

The financial institution that is lending money to you can also ask about your financial statements for the last 2-3 years. This information should be signed by your chartered accountant or tax advisor. These statements give a clear picture about your financial background to the lender.

Debtors and Creditors:

The borrower is also liable to present the complete list of accounts receivable i.e., debtors and accounts payable i.e., creditors. The lender wants to make sure that whether you have borrowed or lent money to someone else or not.

You can maximize your loan accounts by systematically collecting the correct information discussed above. You should always be conscious to never submit wrong information which may result in misleading the lender and hence in the cancellation of your loan application. The more time you take, the better are the chances for maximizing loan amounts.

Product Type :

Loan Type :

Residental Status :

Indian NRI

Full Name :

City :

Mobile No :

Code	Phone No.

Landline No :

Code	Phone No.

Email :

Monthly Income :

Date of Birth :

Employment Type :

Loan amount :

Loan Purpose :