What You Need to Know: A Checklist before Applying for a Loan

26 January 2024

Before applying for a loan, understand the application process and conditions so that you can prepare the required information. The following checklist covers several important points to consider.

Prepare complete documents

The supporting documents may differ according to the type of loan. They generally fall into three main groups:

1. Identity documents, such as a copy of your identification card, a copy of your house registration and evidence of a name or surname change, if applicable.

2. Income documents, such as a salary certificate, employment certificate, original employee identification card and bank statements covering at least the previous six months.

3. Other documents, such as a vehicle registration book or land title deed.

Have regular monthly income

Financial institutions may review bank statements to understand an applicant's financial behaviour. A consistent monthly income credited on identifiable dates can help demonstrate the source and regularity of income.

Maintain a history of on-time debt repayment

A history of timely repayments indicates financial discipline. It can show that you manage your available funds and everyday income and expenses effectively and can make repayments as agreed with creditors.

Avoid an excessive debt burden

A lender will consider your repayment capacity, including the proportion of your income already committed to other debts. If existing debt obligations are too high relative to the income available for repayment, the lender may decline the application.

Choose a loan that suits your circumstances

After preparing the required information, consider the amount you need, the repayment period, the applicable interest and the credibility of the financial institution. Study the details of each loan type before applying so that the product is appropriate for your needs and repayment capacity.

Muangthai Capital provides vehicle title loans, land title deed loans, personal loans and Nano Finance. Customers can submit documents for consideration at a Muangthai Capital branch. At the time the source article was published, the Company had more than 7,000 branches nationwide. Find a branch here.