Leaving an application for a loan, many borrowers and are not suspected that Bank employees will be known much more information than was filled with the client in the questionnaire.
Automatic decision on the loan application is widely used by banks. So-called scoring programs evaluate the financial position of the borrower, as well as the data left in the application.
According to the results of checking and analyzing information, the system makes a score, on the basis of which an employee decides.
Interestingly, banks use unique computer programs that are not repeated in any credit and financial organization. Such an approach prevents the targeted customization of information under the ideal option, which eliminates fraudulent action by borrowers.
In organizations in which the scoring system does not work, it remains relevant and assessment of the application for credit by employees. Experts note that such an approach does not exclude the bias of managers, which can adversely affect the decision-making.
The credit manager independently estimates the level of income, expenses, debt burden, the cost of property, if it is available, requests information in other organizations.
Many borrowers underestimate the role of credit history in making a decision on request, while it is very important to the bank, because it makes it possible to learn how the client has previously paid a loan, whether the delay has admitted how responsibly referred to credit obligations.
Credit history also contains information about all applications for credit and decisions on them. In order to receive this document, the bank employee needs to send a request to the Bureau of credit stories where the relevant information is stored.
Recently, banks have become allowed to send requests to the FIU to verify the status of the personal accounts of their borrowers. True, it is possible to obtain the necessary information with the permission of the Bank’s client.
Thanks to the information received, the Bank can learn about the places of employment, deductions, as well as the income of the borrower.
Providing a creditor of documents on the amount of wages, confirmation of official employment, as well as the presence of property requires a thorough approach. Each document must be tested for authenticity, and, if possible, breaks through the database or registry.
So checking the availability of real estate is carried out in the Unified State Real Estate Register, and the authenticity of the passport in the information system of the Ministry of Internal Affairs.
In conclusion, we want to note that the check of the borrower is made not only for the decision on the issuance of the loan, but also for the formation of lending conditions. So the borrower with a good credit history, stable work and income, as well as in the presence of mortgage property there will be more chances to obtain attractive loan conditions.