A person who wants to borrow money must complete a loan application form. This can be done by hand or online.
The amount of money that a person can borrow depends on a number of personal factors, such as:
• Income: do they have a steady source of income that will cover the repayments? • Job security: how secure is their source of income? • Existing loans: do they have any current borrowings and how much do they owe? • Credit history: what is their history of paying back borrowed money?
Completing and assessing a loan application form A
Go to page 60 of your Activities and Accounts Book to complete and assess a loan application form.
The loan application will ask for the following details: Personal details
Such as the applicant’s name, address and age; if they have any dependents; if they own their own home and how much any mortgage repayments are
To find out if the applicant is working and earning enough to repay the loan
To find out how much the applicant already owes and if they can afford another loan
To find out how much the applicant wants to borrow, why they want to borrow and how long they want to borrow for
When a loan application has been filled out, the lender will check the applicant’s credit rating. Most lenders use the Irish Credit Bureau (ICB) to check if the applicant has a good record for repaying loans. A bad credit rating may mean that the applicant is refused a loan.
