To grant you a loan, Lebanese banks will evaluate your credit profile according to several criteria.
The financial conditions to get a loan are based on three different criteria: the interest rate, the amount of the guarantee and the borrowers insurance’s condition. To determine these criteria, Lebanese banks will ascertain the level of risk of the borrower: The lower the risk, the higher the probability of granting the loan.
To determine the risk level, Lebanese banks base themselves on the following criteria:
A considerable personal contribution in comparison to the requested loan amount creates a higher probability that the bank will grant the loan.
The larger the borrowers personal investment is, the more the applicant will demonstrate to the bank his full commitment to the project which he wishes to finance.
A significant personal investment also demonstrates to the bank the applicant’s financial solidity and capacity to reimburse the loan.
A considerable contribution enables the bank to feel well covered risk-wise.
The banks generally abide to the conditions that your monthly installments should not exceed 33% of your income.
To calculate the debt rate, all your monthly expenses are taken into account, your complete credit line (car loan, house loan, consumer credit, etc.) will be added to the amount of the future loan.
The bank will require a statement of account for a period of 3 months at least.
The purpose is to have a clear idea of the way you manage your income. A potential lender will thus never grant credit to a person who’s spending habits regularly exceeds his income.
Furthermore, any difficulty in paying rent every month makes it unimaginable for the bank to fund a project, which exceeds the amount of rent.
To earn a good assessment from the bank for the level of your financial behavior, even if the amount is proportional to your income, it is essential to set aside a monthly sum in a savings account. This will further prove your financial management abilities.
The sustainability of your income
The longevity and the security of your income is a crucial point, it matters more than your income’s level. You should also take into account that if you are on a trial period at the time you are applying for the loan, it will not likely play in your favor. The longer you have been employed, the more confident the bank will have in the sustainability of your future revenue, making it more likely that they will be inclined to grant you the loan you seek.
These criteria are very important. However, certain failings will eliminate your chances to get a loan.
Nonetheless, Lebanese banks arbitrate in a comprehensive manner: a strong point can compensate for a weak one. Keep in mind that conditions and criteria differ from one financial institution to another. A loan rejection from one bank can be an approval from another lender.
For more information, to compare and choose the right loan offered by Lebanese banks, visit Bnooki.com