the assistant manager need to look at what _____ before granting a loan?
need to examine the customer financial position
Before granting a loan, the assistant manager needs to look at various factors to ensure that the loan can be repaid on time. These factors include:
1. Credit Score: The assistant manager needs to check the credit score of the borrower to know about his/her creditworthiness. A high credit score suggests that the borrower has a good credit history and is less likely to default on the loan.
2. Income: The assistant manager needs to know the monthly income of the borrower to check his/her ability to repay the loan. Generally, the borrower’s income should be sufficient to cover the monthly EMI.
3. Employment Stability: The assistant manager should look at the employment history and stability of the borrower to ensure he/she has a stable source of income. A borrower with a stable employment history is considered more trustworthy and less risky.
4. Collateral: If the borrower is providing collateral such as property or gold, the assistant manager needs to verify its ownership and value to ensure that it is sufficient to recover the loan amount in case of default.
5. Purpose of Loan: The assistant manager needs to know the purpose of the loan and verify if it is a legitimate one. Some loans are riskier than others, and the purpose of the loan can determine its risk factors.
More Answers:
Mastering the Language of Business: Understanding the Importance and Evolution of Accounting.Calculating Your Net Worth: A Step-by-Step Guide for Accurately Measuring Your Financial Health
Analyzing the Financial Position: Key Metrics for Individuals and Organizations