Valuation of assets for the purpose of bank loans

Valuation of assets for the purpose of bank loans

Valuation of assets is essential to perform a variety of business activities such as buying, selling, transferring, investing, contributing capital ... This is especially important in bank loans, here is the first basic activity for the bank to consider the customers ability to accept loans.

Valuation of assets to borrow like?

Currently, in order to realize the purpose of buying houses, cars, investing to expand business ... customers often look to banks to proceed with loans. Especially large businesses often have a lot of business and investment activities, so borrowing money from banks to fund these activities is extremely necessary.

To get a bank loan, the first thing you must have is a collateral. The more valuable the collateral is, the higher the credit limit will be. If the collateral price is lower, the loan limit is lower, so it is difficult to meet customers desire to borrow capital.

Depending on the value of the loan and the purpose of the loan such as business, real estate investment, tourism, etc., we can use a variety of collaterals. The more valuable collateral, the more likely it is to secure large loans with high credit lines. In contrast, the collateral is low, easy to meet price fluctuations, it is often difficult to bring back the desired loan of customers.

What is collateral?

Collateral is property used by the guarantor to secure the performance of civil obligations towards the secured party. The collateral may be current or future assets and are allowed to be traded, including:

Existing objects: means of transport, machinery, production lines, raw materials, goods ...

Valuable papers: Sales contracts, savings books, stocks, bonds, and other papers that are convertible or monetary.

Ownership or use of assets: Certificate of land use rights, ownership of houses and properties associated with land (Red book, pink book) copyrights, intellectual property rights, rights to contribute capital business, the right to exploit resources, and other property rights ...

The purpose of collateral security

- Determination of market value at the time of borrowing of appraised assets.

- Determining the legal properties of assets

- Analyzing and assessing in-depth the living environment and business environment of the appraised property

- Provide valuation methods suitable to each type of asset, helping customers and banks to better assess the value of appraised assets.

- Ensure results are close to market prices, meet customer requirements and avoid bank safety risks.

Search for prestigious asset appraisal unit in Ho Chi Minh City

Appraisal for a bank loan is the act by a bank or valuation company to inspect and consider analyzing collaterals to determine the loan limit to customers. So how do you know what your collateral is worth?

Conducting a real estate appraisal is the first important step for the bank to review and set your loan limit. Each bank has a different appraisal method to give the final value of collateral.

This is the basis for the bank to decide to accept your loan and limit your risk, bad debt before lending. Depending on the loan needs of the customer, the bank will require different evaluation assets. For more information on this issue, please contact Indochina Investment & Appraisal Corporation (INA) for assistance.

We have been in the industry for a long time in appraisal, investment consultancy and real estate investment with a team of professional and skilled staff. Proud to bring customers the best service and the most accurate information about the value of the property. Help business activities and loans of customers are convenient and bring many practical benefits.

Indochina International Investment & Appraisal Joint Stock Company (INA)

• Address: 121 Nguyen Van Troi, Ward 12, Phu Nhuan District, Ho Chi Minh City
• Hotline: 0934 252 707 / Email: info@inavn.vn