A loan application form is a form where you fill in your personal details and other loan-related information, when applying for an advance loan from the bank. The loan application form is completed in full, and any blank answers reduces the chance of getting the loan, delay the loan authorisation process, may lead to a higher interest charge or limits your loan qualification amount. In this article, learn how to complete a loan application form.
How to complete the application form
The financial application form is completed by answering all structured and yes/no questions regarding your personal and other details. It is important to write eligibly and to answer all questions in order to correctly present your details to the lender. In case that there are no answers, it is advisable to write ‘not applicable’ rather than leaving it blank. The information presented should not mislead the lender, and must be accurate and correct.
The basic information required for loan applications is highlighted below. However, some additional information may be required depending on the type of the loan, for example, information regarding driving experience is required when applying for a car loan. Also, some loan forms require detailed personal information, for example, a mortgage form, while others require mainly yes /no type of answers.
Personal details Personal identification details which are your full name(s) and surname, residential address, marital status and sex, are requested when completing a loan application form.
Employment information Employment information includes your employer’s name, physical address, job title or designation, and your salary details when completing a loan application form. The salary date is also required in order to determine the bank stop order date or in relation to pay-day loans.
Credit rate score Personal credit report is used to determine your credit worthiness, and is obtained from the credit bureau.
This relates to current loans with other banks or lending institutions such as existing mortgage loan arrangement or car loan.
Types of loans
Personal cash loan These are mainly short-term loans that are repaid within a period which is less than a year such as pay-day cash loans, budgeting loans and provident cash loan. Property/ mortgage loan This refers to an advance loan from the bank in order to finance the acquisition of property such as a house, machinery, the purchase of a car and students finance.