Here are 5 key steps to get your loan quickly approved:
1. Understand your needs
Before going to the bank, you should go to the websites and check loan packages of different banks, then clearly define your needs, the terms you can meet and your repayment plan. You also need to carefully calculate your monthly repayment amount. After assessing your needs (either auto loans, mortgages, or consumer loans, etc.), and your current income as well, you may need to set the loan amount so that the monthly repayment amount does not exceed 50% of your income to secure your financial well-being. Therefore, even when your main source of income reduces, you can still manage to maintain repayment.
Understanding the terms and conditions of the banks will also help you to compare options.
2. Get some advice from the bank
Once you've found the loan package that may work for you, contact the bank directly to inquire about the terms of the loan in advance. You may need to make an appointment with a relationship manager to discuss the application, documents, and procedures to get a loan. Each bank has different conditions, so you need to know in advance to prepare yourself.
3. Know your limitations
When getting a loan, you need to know your current credit history and credit score because this information will determine the loan approval and the credit line you are granted.
Credit score is a figure that objectively reflects on the borrower's credit history, based on the repayment process and the current status of the borrower's debts with banks (if any). In Vietnam, this information will be integrated by the National Credit Information Center (CIC) under the State Bank of Vietnam, based on periodic credit reports of banks and credit institutions. The higher the credit score, the more likely the loan is approved, in terms of both loan amount and preferential interest rate. When appraising all new loans, banks will send a request to retrieve customer information in the CIC system, which partly makes a basis to approve or refuse the loan application.
Therefore, it is a good idea to review your personal credit history. Do not try to get a loan when you know that your credit history in the last 2 years is not good because you will have to waste additional charges and unnecessary time without getting a loan approved.
4. Make a loan checklist
Based on the information provided by the bank, you should create a checklist of documents to prepare for loan application. In many cases, this preparation also takes a lot of time for contacting various stakeholders such as the human resources department of your employer, local authorities, lenders, etc. Lack of any documentation will delay your loan approval.
5. Do not expect too much
You cannot rush to apply for a loan from a bank. Credit officers must follow a certain process in applying for loan approval and disbursement. You can ask them about that process to estimate processing time. Approval usually takes place within 1-3 weeks depending on the type of loan. You may have to list some of the main purposes of your loan in case the bank needs that information. For example, with a consumer loan, the bank wants to know what you will use the loan for, such as repairing a house, etc.
If your loan is, unfortunately, not approved, the bank will tell you the reason for the denial. This shall adversely affect your credit score, and it is not easy for you to apply for another loan from another bank.