The process of getting a loan typically involves several steps
First, the borrower applies for the loan and provides information about their financial situation, such as their income, credit score, and debt-to-income ratio.
The lender then evaluates the borrower’s application and determines whether to approve or deny the loan
If approved, the lender will offer a loan agreement that outlines the terms of the loan, including the interest rate, repayment schedule, and any fees or charges
Once a loan is approved and disbursed, the borrower is responsible for making regular payments to repay the loan
The amount of each payment typically depends on the size of the loan, the interest rate, and the repayment schedule.
Loans may be repaid at monthly, biweekly, or other intervals, depending on the terms of the loan agreement.
Interest is the cost of borrowing money, and it is expressed as a percentage of the loan amount.