This article will provide you with ways to make your own sample loan application form. There are times when we need financial aid to push through with education, business ideas, or other personal goals. For this reason, lending companies exist ever since the days of old. Today, the primary step for someone who wants to borrow money from individual or institution is to write a loan application letter.
A Loan Application letter is used to help the lender decide if the applicant is qualified for the loan.
Bank loan request is a letter accompanies bank loan application package. Similar to a cover letter accompanying a resume, the bank loan request should sum up the request in brief.
How To Write a Sample Loan Application Form
It should be a one-page document that the banker can read quickly to get the aim of your request. The full details about your business and your loan request will be included in the loan application that you plan to submit.
Step 1 – Briefly explain what your business does. You can use the executive summary from your business plan as a reference in writing this part.
Step 2 – Include important business information. This includes name, the business’s legal name, your legal form of business, business address, annual sales, number of employees, key customers and any other indicators of success.
Step 3 – Specify how much money you would like to borrow and what type of loan you are seeking.
Step 4 – Explain how you will use the loan to attain specific business goals. Detail the measurable results you expect, such as increasing sales by 20% or doubling production capacity in a couple months.
Step 5 – List assets and debts. State the assets you have that could be used as collateral, as well as any outstanding business debts.
Step 6 –Close by listing the documents you’re attaching with the bank loan request and stating that you will contact the banker to follow up.
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Address To The Right Authority
Addressing your sample loan application form to the write party is crucial. Hence, find out who the application needs to be submitted to and address it to them.Asking for a sum of money without mentioning the reason will be too will give a sense of uncertainty.
The lender needs to know why you need the money to decide if the money is going to a good use. Legality is also important as they won’t want the money to be used for something illegal such as drugs. Any debtor would like to know if their money is used in a lawful manner.
Specify The Loan Amount
Once you have got a legitimate reason for the loan request, a specific amount needs to be quoted as this will help decide the lender if you have the borrowing capacity. Present positive characters of yourself to ensure you are trustworthy. This is a collateral use for asking the loan. Your good words and positive work history is can be a guarantee that the money will be repaid and on time.
Mention on how you intend to repay. This depicts your intention of returning the money. This is crucial because it gives a full picture of the loan cycle.
The main key in writing you own loan application form is to always provide the right information and be honest. Lending money has its own risk in itself, hence, being factual and honest about the situation is very important to ensure you have a good credit history as well as honoring the whole process with respect.
A professional, compelling sample loan application form can spur interest in your loan application and increase your chances of approval.
