Will banks approve my loan after settlement of a previous loan?

ahktips

Will banks approve my loan after settlement of a previous loan?

Isthisforreal99

ahktips said:

Will banks approve my loan after settlement of a previous loan?

A bit more detail? Were you in arrears/default on the previous loan or was it fully paid on time.

Grumpelstiltskin

Who knows?????????????????

born_again

Only one way to find out.. That is to ask them.

CliveOfIndia

If by "settlement" you mean that you paid off the loan on time, in full with no arrears or late payments, then the answer is "maybe".

Essentially, any application for a loan is assessed individually.  The bank will look at your credit report for any negative markers (late payments, defaults, whatever).  They will look at your income and expenditure, along with any existing debt.  They'll run all the numbers through their internal algorithms, and the computer will say "yes" or "no".

Each lender will have different criteria, different risk appetites and different target customer bases.  So one lender may accept your application, another may reject it.  It's well worth doing some eligibility checks first to get an idea of who might accept your application (though it's by no means a guarantee).

On the face of it, and all other things being equal, then if you've had a loan from a particular lender before and have shown that you can repay it responsibly, and your financial circumstances are broadly still the same, then there's a reasonable chance you'd be accepted.  Although, any lender will always be revising their acceptance criteria in response to market changes.

But do some eligibility checks - even if your previous lender will accept you, it's possible you could find a better deal elsewhere.

With the caveat, of course, that you should only ever borrow what you can comfortably afford to repay.  And in an ideal world, save up beforehand so that you don't need to borrow anything at all.