Legal & Technical Aspects In Loan Approval Process:
The application and sanction of loan is not one-step process. It involves multiple steps and validation. If the track records and other validation are clear then it’s a simple process, if not then it’s going to be a lengthy and a tedious one.
To evaluate the borrower credit worthiness, most financial institution uses various wide range of risk assessment tools which varies across lenders. In our previous blog we had seen the various parameters and filters that a lender access for sanctioning a loan. In this blog we shall discuss a little detail on the importance of legal & technical aspects in the loan approval process.
The valuation and validation of properties from legal and technical aspect is an important part of the checks and inspection done during the loan process by every lender. This is an important part of the process that covers verification of documentation and all legal aspects. This is done once the credit appraisal process is over. A considerable amount of the loan depends on the legal and technical valuation of the property done by the financial institution through the legal authorities.