There are certain situations in the lives of individuals or business entities where they require more money than what they have in hand. In such financial situations, the business entity or individual will borrow money from another resourceful source of money.
The lending party will get a return or fee for the term the money is not returned. The money that is borrowed from another party is called a loan. The party that takes the loan is the debtor while the one that gives the loan is the creditor. In most cases the creditor charges a certain interest amount on the loan. The creditor may also ask for a guarantee or collateral for the loan extended to the debtor.
While taking a loan from a financial institution the applicant is required to submit a formal loan application or request. This is mostly drafted by the creditor as the loan application form.
The loan can be categorized in different classes depending upon the reason for taking loan. It can be a business loan, personal loan or any other form of loan, but is all requires submission of a loan application form.
The Loan application form requires the applicant to provide all the related information and data that is critical to take the decision of approval of the loan. Any documents and certifications that support the request for taking the loan are also needed to be attached with the loan application form. Hence this is a compulsory document for anyone who desires to take a loan.
Loan Application Form
Letter approving credit application