Objectives of loan application

Answer 1

1. To provide information about the borrower's financial status, including income, assets, and liabilities.

2. To determine the borrower's creditworthiness and ability to repay the loan.

3. To assess the purpose of the loan and how it will be used by the borrower.

4. To evaluate the risk associated with lending money to the borrower.

5. To determine the terms and conditions of the loan, including interest rate, repayment schedule, and collateral requirements.

6. To establish a formal agreement between the borrower and the lender outlining the terms of the loan.

7. To protect the interests of both the borrower and the lender by providing a clear record of the loan agreement.