Loan Affordability: How Atlas Finance Ensures Responsible Lending
When it comes to borrowing money, whether for a personal expense, home improvement, or an emergency situation, understanding your loan affordability is crucial. At Atlas Finance, we believe in responsible lending, ensuring that our customers can comfortably manage their loan repayments without overextending themselves financially.
Loan Affordability Assessment
At Atlas Finance, loans are granted based on your affordability and credit score. We take a comprehensive and holistic approach to assessing loan affordability to ensure that our customers make informed financial decisions. Here’s how we do it:
- Analyse your income: The first step in determining loan affordability, we look at your regular monthly income to gauge your financial capacity to repay the loan. By understanding your income sources and their stability, we can assess how much you can comfortably afford to borrow as we don’t want any of our customers to overextend themselves.
- Evaluate regular monthly expenses: This includes examining essential expenses such as rent or bond payments, utility bills, groceries, transportation costs, and any other recurring financial obligations. By understanding your expenses, we can calculate your disposable income available for loan repayments.
- Assess affordability after expenses: Once we have a clear picture of your income and expenses, we calculate your affordability after deducting all necessary outgoings. This step is crucial in ensuring that you won’t be overextending yourself financially by taking out a loan. We want to ensure that you can comfortably manage your loan repayments without sacrificing your basic needs or facing undue financial strain.
The Importance of Credit Scores in Loan Affordability
In addition to assessing income and expenses, credit score plays a pertinent role in determining loan affordability at Atlas Finance. Your credit score provides insights into your past financial behaviour, indicating your ability to manage debt and repayments. A higher credit score typically signifies lower risk for lenders, while a lower score may indicate higher risk.
Transparency and Education in Loan Affordability
We believe in transparency and education when it comes to loan affordability and want our customers to fully understand the terms and conditions of their loans and how they impact their financial situation. That’s why we provide clear and comprehensive information about loan costs, repayment schedules, and potential implications of missed payments.
Responsible Lending at Atlas Finance
At Atlas Finance, responsible lending is at the core of everything we do. We understand that every individual’s financial situation is unique, and we tailor our loan solutions to meet our customers’ specific needs and circumstances. By prioritising loan affordability, we aim to empower our customers to achieve their financial goals without compromising their financial well-being.
