What does Loan Eligibility Mean?
What does Loan Eligibility Mean?
Loan eligibility determines if you are able to access certain types of loans. It also can dictate which institutions would be open to receiving a loan application from you. As to how big a cash loan might be offered. So, what does this all actually mean? And if you aren’t eligible for a loan, what can you do to access a personal or business loan?
What does Eligibility Mean?
Loan eligibility is how able you are to access a loan. It is essentially the term used by lending institutions after they have calculated the risk of offering you a loan. It determines if they will lend you money as well as how much and the terms of the loan offered. While you can to some extent improve your loan eligibility, many of the factors considered are out of your control.
How is Loan Eligibility Calculated?
The most important factor within a loan eligibility calculation is how much income you have. This calculation takes into account your take-home salary minus any deductibles you have. Deductibles, for example, would be retirement annuities and pension payments or medical aid contributions. Additionally, many countries regulate the maximum percentage of a salary that a loan repayment amount can be.
Why are Loans not Approved?
There are a number of things which can count against you when you apply for a cash loan. Factors which are often considered with your loan application are, for example, income history, your age bracket and credit rating. Therefore, things that can make you less eligible for a loan are if you are retired, black listed or unemployed.
Loans without Eligibility
Not all institutions will extend a loan offer to you, especially if you own your own business. Or want to start a new business. However, there is one type of business loan that you can qualify for, even if you don’t have a good credit record.
A Gold Collateral Loan does not require an eligibility rating. Nor does it require you to submit proof of income, credit ratings or employment history. Instead, what it requires is a Gold or Gold Jewellery item which is owned by you. This is then used as collateral for you personal or business loan.
A gold backed loan enables business owners to access a cash loan when they need it most. Gold collateral loans use what you already own and therefore decreases the personal risk of taking out a cash loan. It also means that if you can’t repay the loan, your loan repayments are covered by your collateral. Because of the nature of collateral loan lending institutions, such as Coughlans, are able to extend easy lending terms. Coughlans is also able to offer extremely competitive interest rates.
If you are considering taking out a business loan, then visit one of Coughlan’s stores today. An expert appraiser will evaluate your Gold & Gold Jewellery, then accordingly offer you a cash loan. Coughlan’s believes in partnering with businesses when they need it most. Even when you are in debt. Practically this means helping you to get a business loan quickly and easily. Therefore, better ensuring that your business doesn’t have a cash-pause.