SECRETS TO SUCCESSFUL BANK LOANS, INCREASING APPROVAL RATES

Borrowing from a bank is a smart financial choice for those in need of capital to purchase a house, land, or vehicle. However, to successfully obtain a loan and increase your chances of loan approval, its essential to understand the bank loan procedures. In particular, the assessment process plays a crucial role in determining the success rate of your loan application. A thorough understanding and preparation will significantly enhance your likelihood of loan approval.

Loan conditions

Successfully borrowing money from a bank depends not only on your application but also on the right approach. To increase your chances of loan approval, you need to understand the loan procedures and ensure you meet the banks loan requirements. One of the secrets to a successful bank loan is choosing the easiest way to borrow money, often through loan packages that suit your needs, such as a home loan or a land purchase loan.

For those with a bad credit history, considering whether or not they can borrow from a bank is important to avoid financial risks. You can also consider which bank offers the cheapest land title mortgage to get a reasonable interest rate, or a bank installment loan if you want to divide the debt into smaller payments. Those who want to build a house can choose a social housing loan with better benefits.

Bank loan conditions typically require borrowers to have a stable income, a good credit history, and supporting documents proving assets. If youre wondering if people with a bad credit history can borrow from a bank, the answer is usually no, but there may be exceptions in some special cases.

Ways to Borrow from a Bank

There are two primary ways to borrow money from a bank: secured loans (mortgage loans) and unsecured loans.

Secured Loans (Mortgage Loans): In a secured loan, the borrower pledges a valuable asset (such as land, vehicles, or properties) as collateral to secure the loan. While the borrower retains ownership of the asset, the bank holds the documents proving ownership.

Requirements for Secured Loans:

• Proof of stable income as per the banks requirements, including salary, rental income, business/investment income, and other sources of income.
• Legally valid collateral such as real estate, insurance contracts, savings books, cars, and other assets.

Unsecured Loans: Conversely, an unsecured loan does not require any collateral. Banks approve these loans based on the borrowers creditworthiness.

Requirements for Unsecured Loans:

• Proof of stable income of at least 3 million VND per month, ensuring the ability to repay the loan (depending on the specific banks regulations).
• A clean credit history with no defaults at other banks or financial institutions.

Note:

• "VND" stands for Vietnamese Dong, the currency of Vietnam.
• The specific requirements can vary between different banks. Its always advisable to check with the bank directly for the most accurate and up-to-date information.

Bank loan procedures
Bank loan procedures include personal documents, proof of income and collateral if any. With the cheapest bank mortgage loan, you need to compare banks to find the best bank loan interest rate.

During the bank loan procedure, individual customers need to prepare:

1. Bank loan application form (according to each banks own form).
2. Legal documents.
3. ID card/Passport of the borrower and the borrowers spouse.
4. Household registration/KT3.
5. Certificate of single status/Marriage registration.
6. Financial documents.
7. Documents proving income from salary: Labor contract, Work decision, Bank statement of salary payment or salary statement of the last 3 - 6 months.
8. Documents proving other sources of income: Contracts for sale/lease of houses, real estate, stable car rental contracts in the last 6 months.
9. Loan purpose documents.
10. Consumer loans: List of items to be purchased...
11. Loans for real estate purchase: Contract/Sales agreement/Deposit paper...
12. Loans for home construction and repair: Construction contract/Estimated budget...
13. Documents on secured assets (if mortgaged).
14. Certificates of property ownership, specifically:

• Certificates of land use rights, house ownership rights (red book, pink book, sales contract), construction permits...
• Mortgage by means of transport (car): Registration, insurance...
• Valuable documents such as savings books...

Interest rates and preferential banks
Interest rates are one of the most important factors when deciding to borrow from a bank. Low interest rates will help you reduce the burden of debt repayment and save a significant amount of money.

The interest rate on bank loans depends on each bank and loan package. The issue of which bank has the cheapest red book mortgage is often of interest to customers. Bank loan interest rates change frequently and depend on many factors such as:

• Loan type: Unsecured loan, mortgage loan, consumer loan...
• Loan term: Short-term, medium-term or long-term loan.
• Risk level: Customers ability to repay.
• Each banks policy: Each bank has different incentive programs and interest rate policies.

Bank interest rates can change frequently depending on each banks policy and market situation. For the most accurate and up-to-date information, you should contact banks directly or refer to reputable financial websites.

Popular bank loan packages
When you need to borrow money, choosing the right loan package is extremely important. Below are some popular bank loan packages that you can refer to:

• Unsecured loans: No collateral required, quick procedures but interest rates are often higher.
• Mortgage loans: Collateral required, low interest rates, high limits but complicated procedures.
• Consumer loans: For personal spending needs, simple procedures, competitive interest rates.
• Business loans: For businesses, large limits, long loan terms.
• Social policy loans: For policy beneficiaries, preferential interest rates.

Asset valuation - The secret to successful bank loans
For the bank loan process to be smooth and quick, asset valuation is indispensable. Valuation is an important step in the loan process. Understanding this process will help you be more proactive and get the best loan.

Valuation is the process of determining the value of the property you mortgage to borrow capital. The appraisal helps the bank ensure the safety of the loan, the result of this process will determine the amount of capital you can borrow and the interest rate applied.

Choosing a reputable valuation company is very important, because the appraisal results will directly affect your decision to borrow capital.

Indochina International Investment & Appraisal Joint Stock Company (SunValue) is proud to be the leading prestigious valuation company in Vietnam, granted a Certificate of Eligibility for Valuation Services by the Ministry of Finance in accordance with the provisions of law. With more than 22 years of experience in the field of valuation, we provide a variety of asset valuation services, business valuation, intangible assets, stocks, bonds, etc. for the purposes of unsecured loans, purchases, mergers, etc.

SunValues team of professional and experienced appraisers always update their professional knowledge and apply scientific and accurate valuation methods, ensuring to bring customers the most reliable and objective valuation results.

⋙ With its outstanding advantages, Indochina International Appraisal is confident to be the first choice for customers when they need to appraise assets.