Borrowing 25th February 2013

Applying for a loan What questions might a bank ask before deciding to give a loan? Does the borrower have a secure job? Has the borrower been saving regularly? What does the borrower want the loan for? Does the borrower have any security to offer the lender? Does the borrower have any previous loans, and if so, were these paid back on time? How much does the borrower currently earn and spend each month?

Rights of a borrower Must be told APR of interest Must be told the total cost of the loan Must be told the number of payments Must be told if there is any deposit or final payment to be made They have the right to cancel the loan within 14days of signing the loan agreement

Responsibilities of a borrower Borrower must budget properly to make sure they have a surplus each month sufficient to cover the loan repayments Must make sure the the loan is repaid fully in the agreed time. Must tell the truth on the loan application form Should use the money for whatever purpose the loan was taken out.