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What Factors Are There For Obtaining A Loan?

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What Factors Are There In Obtaining A Loan?
By Joe Barbieri | Submitted On October 25, 2015

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Expert Author Joe Barbieri
The key premise to keep in mind is that if someone lends you money, they want you to be able to pay it back. They would like you to pay it back slowly so that the lender makes money with the interest. Paying back the principle shows that you have credibility, but it does not make the lender money. What is considered when a loan is created? The factors are:

Interest rate

The interest rate can be fixed or variable. A fixed rate stays the same for a certain length of time. The rate can change once the period of time has expired. A variable rate is tied to a market interest rate like the prime rate or bank rate and will vary typically each day or each month. If you want a predictable interest payment every month because your income is fixed or you cannot afford to pay more than a certain amount, a fixed rate would give you more predictability in your budget. A fixed rate is also advantageous if you think interest rates will rise and you want to lock in a rate beforehand. If you have flexibility in your ability to pay and you are okay

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