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The length of the loan term, or how much time the borrower has to repay the loan, has a huge impact on a mortgages affordability. The term determines not only how long the borrower will be in debt, but also how high the borrowers monthly loan payments and overall loan costs will be.
Your loan purpose is the reason you want to borrow money. When you fill out a loan application, you might come across a section that asks why you are applying. Some lenders do this to match you with the right product. They can also use your loan purpose to assess risk and assign loan terms.
Latest 3 months Bank Statement (where salary/income is credited). Salary slips for last 3 months. 2 Passport Size photographs.
Debt consolidation, financing home improvement projects, paying for moving costs or emergency bills are some of the most common reasons to get a personal loan. Before applying for a loan, assess your credit and finances to avoid future financial woes.
Consolidate debt. Consolidating debt is one of the most common reasons to borrow a personal loan. Cover emergency expenses. Home improvement projects. Finance funeral expenses. Help cover moving costs. Make a large purchase. Cover a major life milestone. Pay for a vacation.
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Purpose of Loan. In detail, describe how youll use borrowed funds. Include written documentation, cost estimates, expansion proposals and other relevant information in this section.
A personal loan is an installment loan. That means you owe a fixed amount each month until you pay off the entire amount. Most personal loans have a payback period between 12 and 60 months. The term of a loan is the amount of time it takes to pay off the entire amount assuming you make all your payments on time.

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