10 Reasons Why Your Loan Application Takes Longer Than It Should
We've all at some stage completed a loan application only to feel frustrated at the continuous delays and non-responses from the loan officers. It's frustrating isn't it. Some times it's the loan officers to be
We’ve all at some stage completed a loan application only to feel frustrated at the continuous delays and non-responses from the loan officers. It’s frustrating isn’t it. Some times it’s the loan officers to be blamed for their tardiness in attending to the ever growing loan applications that’s piling on their desk but more often than not, it’s the borrower (yes, that’s you and me) that are to be blamed.
Through experience, we’ve compiled a list of some of the most obvious reasons why the processing of your loan application takes a lot longer than it really should.
You don’t read the instructions on the loan application form
Quite often, we’re excited about the end result. That is, the purpose of the loan such as a new car, that much awaited Christmas holiday, bride price or even at a bigger scale – that dream home. The dream gets the better of us and we tend to read the instruction sheet and get right into completing the form. Always read the instruction sheet. If you don’t, chances are loan officers won’t waste their time getting you to correct it. Remember, they’ve got hundreds to go through – you’re not the only one applying.
Read each question
Consider all questions on the form to be applicable and complete as much as you can. Sure, some questions might be inapplicable but again read it to understand and then consider whether it applies to you or not. Questions in loan applications are intended to make the officer understand of your financial and personal circumstances. If there is a gap or two, this can often mean that the loan application was done in a rush. Any gap is always a hold-up in the process and the loans officer may skip your application and put it aside to double check later. That’s an unnecessary delay, right?
Hand in the documents the Bank wants to see
Without doubt, every loan application will require you, the borrower, to submit some form of document. This might be your payslip, employer’s letter or a current bank statement. Whatever it is, hand it in. No excuses. Do not ever think that the bank might not ask. They usually do and if don’t hand the document they want, again they’ll put your application aside.
Documents must be as current as possible
When the bank asks you to submit a document, whether it be a payslip or bank statement, make sure that you hand the latest document available. Remember, the bank wants to know your current circumstances and not how you were financially a decade or two ago.
Handing in irrelevant documents
Obviously, loan documents can be quite bulky. And the more irrelevant documents you submit, the more time you’re wasting for the loans officer. The loans officer will realize these unnecessary documents and will soon conclude that you really are wasting his/her time. What is relevant and what is not depends on the question being asked by the bank so again it is important to read and understand each question.
Unsure about a question, call!
At times, we may come across a question that we are a little unsure about. When in doubt, ask an expert, someone you know who has gone through the process or simply call the bank.If you are unsure, give the loans officer a call. A simple phone call can save you and the bank a lot of time.
Lodging at the correct branch
In PNG, we’ve seen that many of the banks tend to accept loan applications from customers who actually have their account there. This shouldn’t be the case but it might also be a case of convenience. If this happens to be the case and it shows on the application form, as Nike says “Just do it”.
When you lodge a loan application, there’s going to be a waiting period. That period varies from bank to bank. If you think you’ve waited long enough, follow-up direct with the officer. Persist.
Do not give-up
Submitting and following up on a loan application can be frustrating. Never ever give-up if you think you’ve got a good chance of getting approval. You never know, your application might be in the last stages of the approval process.
What if you’re not getting anywhere
This has happened to a good number of customers and this usually happens when the loans officer has little to no customer service. They make you frustrated right? Well, if it doesn’t work with him, take it up to the boss. Find a way. You’ll be surprised how attentive their bosses are at trying to ensure customer queries are attended to.