Question

Question: In your own idea, what are the factors that a person need to borrow a money? And explain each factors. (Loan, debt, etc.).

Answer 1

The factors that a person need to borrow money are as follows:

1.Credit History:Person should have good financial habits. Credit history is responsible for determine the financial health of person. It helps in knowing that the person is paying his debt at time Or following the practice of default in payment. You can borrow money in a fast manner if your credit history is good. It means lender will lend you money without any doubts.

2.Occupation Factor:Certain occupations preferred better than any other occupations like Chartered Accountants, Lawyers, Goverment Employees. The Repayment capacity is higher as they belong to the category of Professionals and Goverment Department

3.Age Factor:Age is an important factor which lender considered before giving loans. People belonging to the age group of 25 to 50 are preferred because their financial stability is better in comparison to other age groups.

4.Work Experience:The lender will see how long u have been working in the organization. The reason is if u are serving from a longer period of time u will have more chances to borrow money from lender. People who have work experience of more than 10 years as compared to 4 or 5 years will have more chances to have money.

5.Surplus/Extra Income:Your chances of borrowing money increases when u have surplus income. The Reason is that lender will come to know u are financially stable and not financially stressed and can repay the amount without any doubt.

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