How to Get Approved for a Loan

In order to get approved for any type of bank loan, there are certain requirements that you must meet.

Each bank has different lending criteria, but basically, the principles remain the same.

To increase your chances of receiving the loan you want, I recommend that you include the following information in your loan application:

Explain in a short paragraph why you need the loan. Make sure you check the bank’s terms to see if they even loan out money to individuals for the purpose you request.

Otherwise, you will be wasting not only your time but the banks as well.

Also, you should include the sum you wish to receive, and state the repayment terms. For example, do you want a 1yr, 5yr, or 10yr loan?

Next, you should state how you intend to repay the loan. Home equity line, collateral in stocks, or other means. Include a worst-case scenario. Think about if you were to lose your job, how would you pay then?

The next thing that you need to address is your business plan. This can be summed up in as short as one sentence.

Also, a few years of financial statements for projected future income should be added.

If your company is just starting you might want to consider having a detailed business plan, as this will most likely be the deciding factor on whether or not you receive the loan.

I recommend that you call the bank and get to know the loan officer on a first name basis. This will make it easier for you to get a loan when it comes time.

That way when you present your case, the officer will be more than willing to go to his superiors and help you submit your claim on your behalf.

If the loan is relatively small, he/she may have the authority to rubber-stamp the loan application on spot and approve it for you.

Another option if your credit is not up to par, you can always get a cosigner. These days it is hard to find one, but not impossible.

Start with your immediate family, and then expand outwards to close relatives and friends. Just as you would submit your case to a bank officer, sell your dream to them.

It might even be possible for you to sell a piece of your company in exchange for the money you need. It all boils down to how badly you need the funds.

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