Of course, when issuing a loan, the bank checks the potential borrower and conducts its own assessment of his solvency. Credit institutions use in this case not only traditional methods, such as the quality of credit history and the level of the client's solvency.
The generally accepted approach to assessing the client's solvency
Traditionally, banks have more confidence in borrowers who have a positive credit history. For those who did not allow delays in payments, banks trust much more than unscrupulous borrowers. A lending institution can even provide a loan on more favorable terms to the person who has repeatedly repaid the loan in good faith.
Another important criterion in assessing the borrower's solvency is the data of the NBCH (National Bureau of Credit Histories) and the number of outstanding loans.
Traditionally, banks check the income level of a potential borrower, age and work experience in one place.
How banks determine the maximum loan amount
Basically, when calculating the maximum loan amount, banks look to ensure that the total amount of the monthly payment is not more than 40-60% of the borrower's total income.
Some banks, in addition to credit history, review information located on government resources, and also check the borrower for signs of fraud.
New methods for determining the borrower's solvency
Banks are trying to determine as accurately as possible the level of solvency of their clients, therefore, they begin to use new methods in the analysis in order to more accurately assess the parameters of the borrower.
Credit institutions began to increasingly resort to the help of non-core organizations in order to collect as much information as possible about their clients. In the context of the economic crisis, there are many factors that can affect a person's ability to pay.
Now bank employees can view pages on social networks to determine the client's activity and get to know him better. It turns out that if you are going to apply for a bank loan in the near future, then take care to remove photos from drunk parties and erotic selfies from your profile. You may simply not be given money, considering you a frivolous and unnecessary person.
