The concept of applying for a loan usually is a rather intimidating process for the applicants. This is usually exacerbated by the complexity of the loan application form. Most lending institutions still aim to make this process more accessible to potential applicants by simplifying the procedure but there is still a significant amount of information to be declared by the applicant before the loan agreement comes into existence.
Even though filling up a loan application form might seem like an exercise in filling up the blanks, it is critical that this is performed with the utmost attention to every detail. It is vital that applicants understand the information’s importance from the perspective of the lending institution.
Any information field left blank in the loan application form can raise questions about the credibility of the applicant and prove to be a significant hindrance in acquiring the loan amount. This can make loan officers question the intent of the client, as well as their honesty, with the high probability of the lending institution denying your loan request till all the information is duly presented. It is highly advisable to fill all the information fields, ask one of the institution’s representatives for any clarification and write N/A or “Not Applicable” wherever relevant.
The visual appearance of a particular loan application form also has a significant impact on the lending institution’s impression about a particular loan applicant. From the perspective of a lender, the form is the representation of the client and any illegibility or inaccuracy reflects directly on the applicant.
For a loan application form which requires the applicant to fill it out by hand, bear in mind the following tips:
- Write neatly
- Use capital or block letters wherever specified
- Do not use large letters which exceed the given space
- Do not use small letters which cannot be read
- Implement capitalization wherever necessary
One of the most important things to be kept in mind while filling out any loan application form is that there should be absolutely no fabrication of any information entered in it. The fastest way to have a loan application form rejected and your credit rating demolished is to lie on an application.
While submitting a loan application form, it is imperative that the applicant presents himself / herself as someone who is capable of repaying the loan with all existing payments having been made honestly, consistently, in full and on time. The applicant should avoid any information which can present him / her in a negative light. But if the information is relevant to the loan and is required, it is better to honestly disclose it to the lending institution’s representative before the loan agreement comes into effect. Even if there are aspects which might put the applicant in a negative light, lending institutions are appreciative of clients who have come forward with such discrepancies themselves.
The process of applying for a loan entails the assumption of a temporary debt by the applicant and complete honesty is vital in filling out an Australian loan application form.