Every citizen takes out a loan for specific purposes. Someone needs to do renovation, someone wants to set up his own business, and someone wants to spend a holiday abroad. Even if you are applying for a simple cash loan at the bank, they will ask you about the purpose of the loan.
There are purposes for which banks do not want to borrow money, so you can get a refusal.
Special purpose loans
If we are talking about a purposeful loan, we do not need to explain anything, because it is intended for a specific purpose. A great example of a special-purpose loan is a car loan and a mortgage. We can also exchange loans for renovation, treatment and education. Trade credits and travel credits are also intentional.
If you intend to use any of the above-mentioned loans, you may not think about the goal. But if it’s a consumer cash loan, think about what to enter in the “loan purpose” field.
For what purposes the bank does not grant loans
Although such cash loans are not intentional, you must state the purpose in the application.
There are certain criteria in banks for granting loans. Each bank has its own internal application processing policy.
There are credit targets that banks cannot finance because they are unclear or risky. These categories include, among others:
Money to start or run your own business
The bank will not grant a loan because there are special programs for legal entities. In addition, such use of funds is too risky for the bank and threatens with insolvency, so such an application is most often considered negative.
Henry Esmond grants up to PLN 5,000 for any purpose – even for the first contribution to his own company.
Money to buy jewelry or precious metals
It is a stupid idea to take a loan to buy expensive items. That’s what banks think, so financing this idea will not be accepted.
Even if you want to buy high-quality wedding rings, the bank will reject this idea, however Henry Esmond will gladly support your ideas and help with money to buy.
Money for medical treatment or surgery
The bank will not grant a loan for this purpose because it indicates that the borrower is ill. Hence? This can lead to late repayment, as illness or the effects of surgery can lead to loss or reduction of income. Banks do not want to lose money, which is why they refuse to grant funds for medical purposes.
If money for treatment is urgently needed for you or your loved ones, Henry Esmond can help you. We understand the importance of getting financial help at the right time.