There are many reasons behind requests for money lending, because everyone has their own needs. Some people decide to borrow money because they are pressed financially because they need medical expenses or school fees and some borrow money to use it as business capital. The purpose of the loan can vary to individuals, companies where they work or to banks that do provide loan facilities with collateral of course.
Speaking of the purpose of the loan, at this time it is better to use a loan application letter as proof in black and white so that both the borrower and the lender will be financially secure because for matters of money, mutual trust capital will not be enough. There are many examples of loan application letters that you can use as a reference, but before that you need to be aware of the main functions of the loan application letter:
Private people here can be relatives, closest relatives or friends. Usually when it comes to borrowing money from relatives, family or friends the principle of mutual trust is preferred. It’s just that we never know when they will change their minds. Having black and white evidence is important. Use the sample loan application letter that is specifically designed for loans from individuals. The main points that must be present are:
- The name and address of the loan applicant
- The name and address of the lender
- Borrowing date and time period
- Loan Amount
- Loan interest (if any, because most borrow money from friends or relatives do not charge loan interest because the principle of helping each other)
It’s just a disadvantage is you will not be able to borrow for a long time because those who will lose while the value of money will continue to grow. It is also necessary to add a payment system whether paid in full or in stages.
Loans from the Company
If you work in a company and are in need of expenses, the company usually provides special facilities for employees to borrow money in certain situations. But please also note that not all companies provide facilities like this. Even if there is usually requires a really important reason such as needing money because of treatment or school fees. The points that must be present in the sample loan application letter to the company are:
- The name and address of the employee who applied for the loan
- Lenders are usually represented by HR or finance
- Amount of money borrowed
- The date of the loan and the term of the salary deduction system according to the agreement of both parties
Borrowing money with companies is usually through a salary deduction system and is rarely subject to loan interest. As for the deduction system, it can be discussed in advance, therefore it usually will involve the HRD department that takes care of the salary system. Does the applicant want to be deducted at once from the salary of the following month or gradually in accordance with the agreement period.
Borrowing to Banks
In situations where it is no longer possible for you to borrow from a private person or company, the last remaining option is to borrow from a bank. It should be noted, although borrowing money from the bank can be done at any time and does not require a strong reason like when having to borrow from the company where you work, but borrowing money from the bank will require collateral. If you borrow money for venture capital, then your business can be used as collateral to the bank and if you borrow money for other reasons, your valuable assets such as a house or land certificate can be used as collateral with a higher risk of course, if you cannot pay according to the agreement then collateral that you have submitted to the bank will become the property of the bank entirely.