7 common loan issues

Are you thinking of your first loan application attempt?

Irorun has carefully selected common issues you are likely to come across and how to tackle them.

Let’s jump right in

Many borrowers find it difficult to choose who to borrow from and when it comes to small loans, you will find hundreds of lenders out there, each claiming to be the best. This can be an issue for borrowers.

However, it is essential to know that one lender is not the best for all borrowers. One size doesn’t fit it all.

You should compare lenders based on their various loan terms such as loan amount, interest rate, repayment period, eligibility criteria, document requirements, customer service, and other parameters. This makes it easier to choose one that offers your required loan rate with suitable terms and conditions.

As unbelievable as it may be, a lot of borrowers do not even pass the first stage of verification. There are many rejections due to an inability to meet the prospective lender’s requirements as well as other issues such as age inconsistencies or an unstable income.

One way to avoid such a situation would be to ensure the eligibility criteria of lenders. When completing a loan application, it’s important to state all the details correctly.

The lender will check your credit report and verify your details. If both parties are not compatible, there is a good chance your application will be rejected.

Most people tend to ignore any charge that is not the interest rate. You shouldn’t do this. These charges can become a really big problem later. Some fees that are not mentioned when you take out a loan are processing fees, fines on late payment, charges on prepayment, transactional fees etc.

As a rule of thumb, it’s important that you ask your prospective lender questions regarding other fees to prevent surprise fees.

One’s credit score says more about their finances than one could ever say about themselves. It’s an honest indication of your financial skills. And no responsible lender will be enthusiastic to “compromise” when it comes to your credit score.

Lenders need to verify your creditworthiness before lending because as we always say, a lender who’s not afraid to lose their money is dangerous. No lender would lend to someone if they were unsure of the person’s capability to repay the loan with interest. Here are some tips to help you boost your credit score.

Several go into loan application and approval, fortunately, digital lending platforms have made the process oh-so-easy.

Yet, there are some necessary checks that lenders can’t compromise on. Lenders carry out a careful assessment of your documents as well as confirm genuineness through live-means and this can be an extensive process.

However, all the work that goes into this process is not only important but also essential to avoid any future issues. The best method to go about this process is to make a checklist of all the required documents before submitting them to the lender. This prevents issues of misspelled names, inconsistent data etc…

We earlier mentioned how lenders verify your identity through live-means. This is what we mean — Irorun, for example, will need you to do a face match to confirm “genuineness”. This becomes an issue when one is in an environment with bad lighting, thereby discrediting their authenticity. We no fit give loan to who him face no show o!

Although it might seem frustrating, Irorun only does this in your best interest. You should put an effort in making sure your facial details show up clearly (take pictures in places with good lighting), failure to do so can lead to a rejection.

There are scammers out there who could have the complete details of another individual but they won’t have the same face. So, a facial match helps prevent fraudulent acts like identity theft.

People tend to feel vulnerable when they give a site or app access to their data, they tend to think of the worst-case scenario. I mean who can blame them, there are some malicious lenders out there, but despite all that, ethical lenders will never misuse your data. Here’s why you can trust Irorun to never misuse your data.

Granting access is not necessarily a bad thing as some vital information they need to process your identity could be gotten from your device. Some people, without knowing the implication, deny lenders access to their devices and this can cause lenders to doubt your authenticity. Remember, that the lender is also taking the risk of lending to you.

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We’re just a message away, talk to us at support@irorun.com to get answers to all your questions and assistance in securing your first loan!