1. Application stage:
The first step in the loan process is to fill out the loan application. At this stage, the borrower needs to provide personal information, financial status, loan amount, loan term and other related information. This information usually includes proof of identity, proof of income, credit report, etc. The borrower also needs to fill in the loan application form according to the requirements of the lending institution and provide relevant supporting documents as required.
2. Audit and evaluation stage:
Once the loan application is submitted, the borrower will conduct a detailed review and evaluation. This involves the verification and inspection of the borrower's personal information and financial status. Lenders will also assess the borrower's credit history, repayment ability and other risk factors. This stage may also include face-to-face or telephone communication so that lending institutions can better understand the borrower's situation.
3. Contract signing stage:
If the borrower passes the examination and decides to issue a loan to the borrower, both parties will sign the corresponding contract. The contract will specify the loan amount, interest rate, repayment method, repayment period, liability for breach of contract and other important terms. The borrower needs to read the contract carefully to ensure that he understands and agrees to the terms of the contract. Before signing the contract, the borrower may also need to pay the corresponding handling fee or collateral evaluation fee.
4. Loan stage:
After the contract is signed, the borrower will issue the loan to the borrower in the way agreed in the agreement. This may be through bank transfer, check or other designated payment methods. At this stage, the borrower needs to provide relevant bank account information to ensure that the funds can arrive safely.
5. Repayment stage:
Once the loan is issued, the borrower needs to repay it on time according to the repayment plan agreed in the contract. Borrowers can usually choose to repay monthly or interest. In the process of repayment, the borrower needs to ensure that the principal and interest are repaid on time to avoid overdue repayment and extra expenses.
6. Final stage:
When the borrower has completed all the repayments, the loan process is over. At this stage, the lending institution can issue a repayment certificate to the borrower and will update the borrower's credit record. Borrowers can also seek credit repair advice from lending institutions or consult other financial-related matters.