What is the difference between credit cards and loans?
Credit loans and credit card loans. Both are loans made using an individual's credit. Although there is only one word difference between the two. But the two are fundamentally different. Today I’m going to summarize the differences between the two.
1. Application conditions
Credit loan: generally requires a stable job, bank flow, and good credit;
Credit card: can provide an employer , credit report is good.
2. Ease of application
Credit loan: relatively difficult;
Credit card: relatively easy.
3. Requirements for work
Credit loan: It is required to have a stable job;
Credit card: In principle, it is necessary to have a stable job, but Units can be packaged and the requirements are relatively low.
4. Income requirements
Credit loans: Basically, monthly income is required to be above 3,000 yuan, and the requirements in first-tier cities will be higher;
Credit card : Generally banks will not require bank statements, but will infer based on work and social security conditions. Generally speaking, a monthly income of more than 2,000 yuan is required to pass.
5. Different credit loan limits
Credit loans: At present, most credit loan limits are between 10,000 and 500,000, and some banks can even offer up to 2 million. Within;
Credit card: Credit card limits vary widely, generally ranging from 500 yuan to 10,000 yuan, but most limits are between 10,000 and 50,000, depending on the level of the credit card. , credit card levels are divided into: regular card, gold card, platinum card, diamond card, unlimited card, etc.
6. Different fees
Credit loans: The interest rates of credit loans vary greatly. The qualifications and interest rates of different lending institutions and different loan customers may vary greatly, usually small. Loan interest is between 1.5% and 3% per month, while bank interest is between 10% and 15% per year.
Credit cards: Credit cards are normally interest-free. Generally, the interest-free period ranges from 45 to 60 days, if it is an installment payment. You can choose from 3 months to 24 months.
7. Term
Credit loan: The term of credit loan is generally between 3-36 months;
Credit card: If the credit card is swiped, it is free of charge. The shortest interest period is 1 day and the longest is about 55 days; if it is installment, you can choose 3-24 months.
8. Disbursement speed
Credit loan: It takes about 2-5 working days from application to disbursement of credit loan;
Credit card: waiting time for credit card issuance It takes a relatively long time, usually 15-20 days, but once the card is issued, it is very convenient to use, and you can basically get money instantly.
The difference between credit cards and loans
The differences between credit cards and loans are as follows:
1. Different limits: Credit card limits are relatively small and can only be used for consumption. , if you withdraw cash, you will be charged interest, and the repayment period is relatively short. Loans have relatively large amounts, long terms, and relative flexibility.
2. Different interest-free periods: Generally speaking, credit cards have interest-free periods, but loans do not.
3. Different consumption methods: The credit limit of a credit card can generally only be used for consumption, while loans can be used more widely.
Overpayment: People often pay more when repaying their credit cards. For example, if the bill is 3,000 yuan, they may pay back 3,100 yuan, etc. They think that it is not a big deal to pay more, as long as it is not overdue. . In fact, overpaying is also risky, especially if you do not use the card for a long time after repayment, more than one year, the overpaying may turn the credit card into a bad debt. Once a bad debt record appears on the credit report, you will never be able to apply for a credit card or bank loan again unless it is dealt with. It will be 100% rejected without questioning. In addition, no matter how long it takes to repay the extra money, the bank will not give you 1 cent of interest, and you will have to pay a handling fee when you withdraw it. This is completely different from depositing on a debit card.
Automatic credit card repayment: Many people will say that automatic repayment is good. After setting it up, you don’t have to manually repay it. The system automatically deducts the payment, which saves a lot of worry. Many people have never noticed that in order for automatic repayment to be successful, you must have enough money in your savings card for the system to deduct the money.
As a result, the savings card associated with automatic repayment did not have enough money to be deducted, and I did not manually make the repayment within the grace period of the last repayment date. You don't have to think about the consequences, you know it will be overdue. If it is overdue, interest will accrue, and you will definitely have to pay more for repayment.
Choose the minimum repayment: The minimum repayment generally only requires about 5% to 10% of the new consumption amount in the current period without being overdue. The repayment pressure in the current period is relatively small, but it is the least cost-effective. Yes. No repayment
The credit card has a credit limit, so you can spend it first and then repay it. If the cardholder repays the entire amount due before the due repayment date, all consumption in the current bill will enjoy the interest-free period repayment treatment, and no interest will be charged.
In addition to consumption, you can also withdraw cash and make installment payments. Especially when traveling, international credit cards are very useful for booking air tickets or hotels. UnionPay cards are not widely used.
And there are more marketing activities for credit cards. If you are also using a card, then using a credit card is more cost-effective. In addition to being easy to use, you can participate in marketing activities, and you can also accumulate credit card points, which can be redeemed for gifts.
What is the difference between a credit card and a credit loan?
The difference between a credit loan and a credit card:
1. The application conditions are different;
2. The difficulty of application is different;
3. The requirements for work are different;
4. The requirements for income are different;
5. The amount is different;< /p>
6. Different fees;
7. Different terms;
8. Loan speed.
Credit cards and credit loans, the two are very familiar from the name alone, and many friends are confused when applying for loans. Is a credit card or a credit loan better? What's the difference between the two?
1. There are differences in the issuance carriers
Credit cards: The issuance carrier of credit cards can only be banks.
Credit loans: The carriers of credit loans are not limited to banks, but can also be private financial institutions, ++++ companies, P2P platforms, etc.
2. Application conditions are different
Credit card: Can provide employer, good credit report.
Credit loan: generally requires a stable job, bank statements, and good credit.
3. The loan limit is different
Credit card: Usually, when applying for a credit card for the first time, the limit is generally between 5,000 and 20,000. If the cardholder often uses the credit card and If you have a good repayment record, the bank will automatically increase your credit limit. Moreover, the credit card has a revolving limit, and the credit card can be lent out on a recurring basis once the repayment limit is restored.
Credit loan: Under normal circumstances, the application limit for a credit loan will be determined based on the usage of the credit card. It is usually between 10,000 and 500,000, and the maximum can be 2 million. However, credit loans are generally a one-time limit, and the contract will be terminated when the loan is fully repaid. If there is still a need for borrowing, you need to apply separately.
4. There are differences in loan interest
Credit cards: Generally, credit cards have no interest as long as they are repaid in full and on time, but if the repayment is overdue or the repayment is not in full, then The bank will charge a certain amount of interest. In this case, credit card interest is calculated from the date the consumption is recorded. Interest is charged at 0.05% every day, and compound interest is calculated monthly. In other words, if the interest this month is not paid off, the interest will also accrue next month. Interest.
Credit loan: The interest rate of personal credit loan depends on the interest rate of the loan, the term of the loan and the amount of the loan. Different banks and lending institutions may have different interest rates on credit loans. Apply for personal credit at the bank. For loan business, the annual interest rate is generally about 11%, and if it is handled through a loan company, the interest rate is usually 18% to 36%.
Is a credit card a loan? Here is the difference between a credit card and a loan
Many people ask, is a credit card a loan? In fact, from a certain perspective, a credit card is also a small loan, but not entirely. There is a difference between a credit card and a loan. Many cardholders do not know what the difference between the two is. Today, let’s compare the two. , see what are the differences.
1. Credit card and loan approval limits are different
The credit limit of a credit card is reviewed and determined by the bank based on the personal economic conditions and credit status of the card applicant. The limit will vary depending on the card’s Levels have different amount limits. The higher the level, the higher the credit limit and the higher the qualification requirements for card applicants.
Compared with ordinary credit cards, the bank loan limit will be higher. Depending on the applicant's needs, the bank will approve it, which is generally as high as hundreds of thousands.
2. Credit card and loan terms are different
The longest credit card installment business is two years, while bank loans can be up to 30 years. The deadline can be decided by the applicant.
3. The scope of fund use is different
Credit cards have a wider scope of use and are more flexible. They can be used wherever credit cards can be swiped, without restrictions on use. Consumer loans are generally earmarked for specific purposes. For example, car loans can only be used to buy cars, decoration loans can only be used for decoration, and study abroad loans can only be used for studying abroad, etc.
4. Application convenience is different
Credit card applications are relatively easy. Customers can apply through bank branches, bank official websites, WeChat, mobile APP and other channels. During the application process, you only need to provide personal information and application materials such as proof of employment and income. Credit card approval times are relatively short and application is more convenient.
Consumer loan application takes a long time and is troublesome, with cumbersome procedures and strict approval. Many times, applying for consumer loans requires applicants to provide a lot of supporting documents, and even provide mortgages, guarantees, etc.
5. The fees that need to be paid are different
Credit cards enjoy an interest-free period of up to 50 days to 56 days. Cardholders are free of charge for overdraft consumption during the interest-free period. As long as you repay the loan in full before the due date, you don't have to bear the capital cost. Consumer loans do not enjoy an interest-free period. Loan applicants are required to repay each installment on time from the effective date of the loan. Loan costs cannot be avoided.
6. Different repayment methods
Credit card holders can choose to repay in full, repay in installments or repay according to the minimum repayment amount. Cardholders can choose according to their own needs. Actual situation selection. Consumer loans are repaid on a fixed schedule.
What is the difference between a credit card and a bank loan?
A credit card is a credit certificate issued by a card issuer to consumers with qualified credit. Consumers who hold a credit card can overdraw their purchases within the specified limit. A bank loan means a bank lends a certain amount of money to qualified applicants, and the borrower needs to pay interest. The main differences between the two are:
Credit cards have interest-free periods. Different card issuers have different regulations. The longest is about 56 days. As long as the credit card holder pays off the overdraft in time before the repayment date. The bank will not charge interest on the loan. Of course, if you cannot pay it off, you will need to pay corresponding interest, and this interest rate is relatively high. On average, the interest rate of most card issuers is above 8% annually, which can be said to be relatively high.
Bank loans require payment of interest regardless of cycle and purpose. Relatively speaking, the floating range of interest rates is also relatively large. For example, housing provident fund loans and daily consumption loans have very different interest rates. But generally speaking, the interest rates for bank loans are much lower than the interest rates for credit card installment payments.
Credit cards are mainly used to evaluate personal credit. After you obtain a credit card through one-time review, you can keep it and use it as long as you use it within the validity period of the credit card. If your credit record is good, it can continue to improve. Quota. Bank loans are one-time. Once approved, the cycle ends until the final repayment is completed. If you want to apply for a new loan, you need to go through the process again, but whether the new application can be approved is very uncertain. Big. If the bank's own quota is tight or industry policies are tightened, the applicant may not be approved.
The credit limit of most people's credit cards remains unchanged within a relatively stable period of time. Card issuers usually provide some temporary limits during peak consumption periods such as holidays, but then cancel them. However, the flexibility of bank loans is much greater. It has a lot to do with the applicant's loan purpose, that is, the collateral, guarantor, and occupational conditions. For example, the amount of a home loan is usually much larger. Using a house as a mortgage loan is better than using an ordinary mobility scooter. The amount that can be borrowed as collateral will be much larger.
In fact, there are many differences between the two, which will not be described one by one here.
Welcome to pay attention and communicate together.
Hello everyone! I have worked in a bank for a long time and am involved in both credit cards and bank loans.
I summed it up, there are the following 6 differences between credit cards and bank loans:
In the past, whether we went to supermarkets, shopping malls, restaurants, or movie theaters, we would often take out a credit card and swipe the card when checking out. Pay. Nowadays, mobile payment is very popular and physical cards are used less often, but most people have more than one credit card tied to their Alipay and WeChat Pay. Like a debit card, a credit card is a payment tool that can be used very conveniently to pay for various daily expenses.
Bank loans are not payment instruments. When people use bank loans, they often put the loan into a debit card and then pay with the debit card.
Furthermore, since credit cards are payment tools, credit cards, like debit cards, not only have a bank++ generated according to unified rules, but also can set transaction passwords. In addition to digital credit cards, most regular credit cards have a physical medium, which is a card. ++, password, and media, these three things are not available in bank loans.
Not only that, because credit cards are payment tools, they have derived a series of payment methods such as card discounts, co-branded cards, and consumption points, which are not found in bank loans.
Just like the word "credit" in a credit card, credit cards are basically purely credit-based. Although the "Regulations on the Supervision and Administration of Credit Card Business of Commercial Banks" stipulates that when necessary, the card-issuing bank can require the cardholder to implement a second source of repayment or provide a guarantee, but in practice, this situation is relatively rare.
Bank loans are different. Bank loans have various guarantees such as mortgages, pledges, and guarantees. The home loan that everyone often talks about is a kind of mortgage loan. The borrower mortgages the house to the bank, and the bank will issue the loan with peace of mind. In addition, pledge of deposit certificates and bank financial products++++ are common++++. Also, for example, my colleague and I apply for a loan at the bank, and the two of us guarantee each other. This is a guaranteed loan.
Credit cards originated from credit accounts, that is, accounts are first recorded after consumption, and the accounts are settled after a period of time. Therefore, in the credit card business, bills are very important.
Revolving around the settlement of bills, concepts such as interest-free repayment period and minimum repayment amount have emerged. Everyone should know that only by settling the bill in full before the due payment date can you enjoy the interest-free repayment period. As long as the repayment amount is greater than the minimum repayment amount before the due repayment date, it is not considered overdue, and the unpaid principal and the resulting interest will be calculated into the next bill, and the cycle repeats.
Bank loans are not so complicated. After the loan is successful, the bank will provide a repayment plan, and the borrower only needs to repay the loan in full and on time. Although some banks now engage in some interest-free activities in order to expand the scale of loans, there is no fixed mechanism such as interest-free repayment period and minimum repayment amount for bank loans.
According to the regulations of the People's Bank of China, the upper limit of credit card overdraft interest rate is RMB 50,000 per day, and the lower limit is RMB 3.5 per day, which is very clear.
There is no clear upper or lower limit for bank loans. As for the upper limit of bank loan interest rates, most in the industry think it is 24%, but some people think it is 36%, and the regulatory authorities have not issued a clear document. With the continuous advancement of marketization of loan interest rates and the existence of some interest discount policies, there is no clear lower limit for bank loans.
Credit cards not only have interest, but also annual fees, cash withdrawal fees and other fees. These two fees are not found in bank loans.
Many banks support the application of supplementary credit cards, but bank loans do not have similar functions.
The above are the 6 differences between credit cards and bank loans that I have summarized. After reading this, you will find that there is a big difference between credit cards and bank loans. Among them, I think the biggest difference between the two is that a credit card is not only a lending tool, but also a payment tool. Payment is the core function of a credit card; while a bank loan is just a loan, not a payment tool.
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Hello, I am Monopoly. Regarding your question, my suggestions are as follows:
First of all, bank loans and credit cards both apply for a certain amount of funds from the bank for turnover or consumption, but there is a big difference in interest rates between the two. Failure to repay in time may also have a certain impact on our personal credit score, thereby affecting our daily life.
So what is a credit card? What process does it take to get a bank loan? !
A credit card is a card issued by a bank. The collateral is personal credit, and the obtained is a virtual number, which is an overdraft consumption; while a loan requires the use of physical objects such as cars and houses or valid values ??such as stocks and bonds. The certificate is pledged as collateral and the money received is cash.
The differences between credit cards and bank loans are mainly reflected in the following seven aspects:
1. Different application materials
Credit card application: Provide proof of workplace and income;
Loan application: Work unit, income certificate, bank statements, real estate, vehicles and other physical objects or stocks, valid certificates of bonds as collateral.
2. Different borrowing methods
Credit card lending is mainly based on credit evaluation, with the characteristics of continuous evaluation and continuous issuance;
Bank loans are based on the review results. Accurate, apply once and issue once.
3. Different borrowing limits
Credit card borrowing limits are low, usually less than 10,000, suitable for short-term small consumption;
Loan borrowing limits are common It is relatively high and is mostly used for large expenditures on house purchase and investment.
4. Different borrowing periods
Credit card repayment period is short, interest is high, and the longest repayment period is 24 months. The financial pressure of the repayer is relatively high, and the longest repayment period is relatively high. The term is 24 months;
The repayment cycle of bank loans is relatively long, and the interest rate is generally low. It can be repaid in 5 years, which reduces the financial pressure of the repayer to a certain extent.
5. Different borrowing purposes
Credit cards do not need to indicate the purpose of the loan;
Bank loans must indicate the purpose of the loan. If you default, you will be held responsible and may even be punished.
6. Loan costs are different
The credit card interest-free period is set, with a maximum period of 56 days. It is stipulated that no interest will be charged if the loan is returned within the interest-free period, but the interest cost will be very high if it is overdue;
There is no interest-free period for bank loans, and interest must be paid from the time the loan is borrowed until the repayment period expires. As the repayment principal decreases, the interest calculation base will also decrease accordingly.
7. Different methods of early repayment
Credit card repayment methods are relatively fixed, one-time charge, non-refundable, and early repayment is meaningless;
There are many loan repayment methods, including repaying the interest first and repaying the principal in one lump sum upon maturity, or a mixed repayment of principal and interest. Early repayment is allowed on the premise of charging partial penalty for early repayment.
Therefore, the characteristics of credit cards are that it is faster to obtain funds, but the amount of funds is relatively small, which is suitable for making up for the lack of daily consumption; bank loans have large amounts of funds and low interest rates, which is convenient for large-scale purchases such as house purchases and investments. expenditure requirements.
The above is my answer. I hope it can help you, thank you!
1. Differences in nature
Credit cards, also called credit cards, are credit certificates issued by commercial banks or credit card companies to consumers with qualified credit.
Bank loan is an economic behavior in which the bank lends funds to those in need of funds at a certain interest rate according to national policies and agrees to return it within a time limit.
2. Differences in application conditions
Those who apply for credit cards are divided into units and individuals. Applicants should be institutions, enterprises and business units, foreign-funded enterprises and individual industrial and commercial households with independent legal person status in my country. Each unit applying for a credit card can receive a main card and multiple supplementary cards as needed. To apply for a credit card, an individual must have a fixed occupation and a stable source of income, and provide a guarantee to the bank.
The required conditions for borrowers of bank loans are natural persons aged 18-60 (Hong Kong, Macao, Taiwan, Mainland China and foreign nationals are also acceptable); have a stable career, stable income, and the ability to repay the principal and interest of the loan on time; borrow money The person's actual age plus the loan application period should not exceed 70 years.
3. Differences in types
Credit cards can be divided into bank cards and non-bank cards according to different card issuers. For credit cards issued by banks, cardholders can shop and consume at the card-issuing bank's special merchants, and can also withdraw cash at any time at all branches of the card-issuing bank or places with ATMs; non-bank cards can be specifically divided into retail credit cards and travel credit cards. entertainment cards.
Bank loans are divided into short-term loans, medium-term loans and long-term loans according to different repayment periods; according to different repayment methods, they are divided into current loans, term loans and overdrafts; according to different loan purposes or objects, they are divided into industrial and commercial loans Loans, agricultural loans, consumer loans, securities broker loans; according to different loan amounts, they are divided into wholesale loans and retail loans.
The difference between bank loans and credit cards is:
1. Different scope of use:
A credit card is an overdraft consumer card, and the cardholder can use the credit limit to swipe the card Consumption. There are many types of loans and their uses are wider than credit cards. They can be used to buy cars, houses, etc.
2. Different interest-free periods:
Bank loans generally do not have interest-free periods, and credit cards generally have longer interest-free periods.
3. Different repayment methods:
Bank loans have fewer repayment methods and support installment repayment and early repayment. For credit card repayments, you can generally apply for early repayment, on-time repayment, installment repayment, minimum repayment, etc.
There is a difference. A credit card is a separate card issued to you by the bank. It is used for swiping purchases. There are various types of credit cards. Different types of cards enjoy different benefits. Some of them are for watching movies. Discounts, gas discounts, etc. After each month's consumption, it will be paid off in the next month's cycle. Similar to Alipay's Huabei, there is no interest, but if it is overdue, it will enter the personal credit system. If you use the credit card frequently, the bank will If the situation sets you as a user with high credit, your credit limit will also be increased.
As for a loan, you take the initiative to apply for it from the bank. There are many types of loans, such as housing loans, consumer loans, mortgage loans, etc. The interest rates of different loans are also different. The loan amount will be determined by the bank from various aspects. The lender makes an evaluation and decides whether to lend to you and the amount of the loan.
Finally, protect your credibility! ! Don’t be late
The difference between a credit card and a loan is huge.
Credit cards are for independent consumption. When cash is needed, you can withdraw part of the cash for emergencies.
To apply for a loan, you need to go to a bank. The bank will evaluate your current flow, credit report and repayment ability before giving you a loan. It’s also possible that they won’t lend you money.
Of course, it’s similar to “routine loans”, so I won’t talk about that. There is no lower limit.
Nowadays, the use of credit cards is very common. I have seen a set of data released by Rong360. It seems that on average there is one credit card every two years. Considering that the elderly use less credit cards and children do not apply for credit cards, the average number of credit cards held by young people is estimated to be higher. high. I often hear feedback from online friends that they have more than a dozen credit cards on hand. As a medium for credit consumption, the essence of credit cards is to borrow money from the bank and repay it later. So compared with traditional bank deposits, what are the differences and similarities between credit cards and bank loans?
1. Different ways of lending funds. A bank loan is usually a one-time loan, whereas a credit card is a loan as you go. For example, if you apply for a consumer loan of RMB 50,000, after submitting all the information and passing the bank's approval, the funds will be transferred into your personal account at once to complete the loan. Although the purpose of the funds will be understood during the review, it is actually difficult and impossible for banks to clearly track where the money actually flows in the end, as long as it is paid back in the end. With a credit card, the bank only lends money when there are actual transactions and purchases. Within the total limit, each swipe counts.
2. The interest calculation methods are different. When applying for a bank loan, the interest rate and repayment method are agreed upon, and then the principal and interest are repaid according to the repayment plan. The most attractive thing about credit cards to users is that credit cards provide one month of interest-free account period. This month is equivalent to the bank providing free funds for cardholders to consume, and they only need to return it to the bank on the repayment date next month. . If you are unable to repay when due, you can extend the repayment period through bill installments, and interest will only accrue at this time. Comparatively speaking, the interest rate of credit card installment is higher than that of ordinary bank consumer loans. The former may have an annual interest rate of more than 10%, while the latter can now apply for about 5%.
3. Credit cards and bank loans are two completely different types of financial services from banks. For bank loans, the profit model of bank loans is the interest difference.
Credit cards are completely different. If credit card users do not pay in installments, it will incur additional capital costs for the bank. However, through credit cards, there are other business transfers between banks and cardholders, and various services based on credit cards It is a link that can cooperate with online and offline merchants to provide financial services. It can also target high-end users and become a private wealth management bank. This is an additional source of income for banks after they have a group of credit card users, and it is also the core of the credit card profit model.
Or you can joke that a credit card is a marriage between the cardholder and the bank, while a bank loan is just a short-term love affair.
The differences between bank loans and credit card installments are as follows:
1. Bank loan: It is just a lending relationship with the borrowing bank.
2. Credit card installment loan: It also has a lending relationship with the borrowing bank, but it relies on the installment loan of the credit card.
The difference between bank loans and credit cards
There are many types of bank loans, including consumer loans, mortgage loans, car loans, housing loans, etc. Strictly speaking, a credit card is a consumer loan, but Cardholders can enjoy a certain interest-free period, which is a payment method where you consume first and repay later.
The differences between credit cards and loans are as follows:
1. Different limits: Credit card limits are relatively small and can only be used for consumption. If you withdraw cash, you will be charged interest and the repayment period is Relatively short. Loans have relatively large amounts, long terms, and relative flexibility.
2. Different interest-free periods: Generally speaking, credit cards have interest-free periods, but loans do not.
3. Different consumption methods: The credit limit of a credit card can generally only be used for consumption, while loans can be used more widely.
Bank loan refers to an economic behavior in which a bank lends funds to those in need of funds at a certain interest rate in accordance with national policies and agrees to return the funds within an agreed period. Generally, you are required to provide a guarantee, a house mortgage, or proof of income, and have a good personal credit report before you can apply.
Moreover, in different countries and in different development periods of a country, the types of loans classified according to various standards are also different. For example, industrial and commercial loans in the United States mainly include ordinary loan limits, working capital loans, standby loan commitments, project loans, etc., while industrial and commercial loans in the United Kingdom mostly take the form of bill discounts, credit accounts, and overdraft accounts.
Bank loan refers to an economic behavior in which an individual or enterprise lends funds to a bank at a certain interest rate to individuals or enterprises in need of funds in accordance with the policies of the country where the bank is located, and repays the loan within an agreed period.
Loan Tips
Nowadays, more and more people born in the 80s and 90s are taking out loans to buy houses and cars. Suddenly, the loan business provided by banks has become the "new favorite" of the times. However, it is still a bit difficult to successfully obtain a loan from a bank, and it is even more difficult to obtain a loan during certain periods. Below I will share with you a few tips for successful loans, hoping to help more people successfully obtain loans.
1. Reasons for borrowing: During the process of applying for a loan, the borrower should be frank and clear about the reasons for the loan, and write down in detail the purpose of the loan and the personal advantages in repaying the loan. For example: good personal credit record.
2. Borrowing amount: The amount of the loan the borrower applies for at the bank should not be too high, because the larger the amount, the higher the possibility of failure. However, this is not what the lender wants. They are sure I don’t want my loan funds to be less than half