We assess an applicant's ability to repay a loan by analyzing their income and monthly expenses. We often calculate the debt-service ratio, which compares the total monthly debt payments (including the new loan) to the applicant's gross monthly income. A lower debt-service ratio indicates stronger repayment capacity.

This ratio compares the applicant's total debt to their gross annual income. A lower debt-to-income ratio is generally preferred, as it indicates that the borrower is not overly indebted compared to their income. We often set thresholds for this ratio, and applicants with ratios below these thresholds are more likely to be approved for a loan.

We ensure that borrowers have a stable and reliable source of income to repay the loan. We review the applicant's job stability, the length of their current employment, and the general trend of their income over time. Borrowers with stable employment histories and regular income are often considered less risky to lenders.

We often require detailed documentation to assess a loan application. This can include recent bank statements, proof of income such as pay slips or tax returns, statements of existing debts, and other relevant financial documents. Complete and accurate documentation is essential for assessing loan eligibility and speeding up the approval process.