Question

Gerard wants to borrow $20 000 from a bank to start a landscaping business. Gerard has always maintained timely repayments on his personal loan, two car loans and three credit cards. With an after-tax income of $45 000, total savings of $4000 and monthly living expenses averaging $1600, will Gerard’s loan be approved? Explain your answer

Answer 1

gerard's loan will be approved and he is able to start the landscaping business. If we analyse the information given, we understand that he has a great credit rating.

The reasons are as follows

• Gerrard has always maintained timely repayment of his personal loan, 2 car loans and 3 credit card loans
• He is having an after-tax income of 45000 dollars
• His total savings are $4000
• Is average monthly expenses are $1,600

If we analyse all the above facts we understand that, he has the ability to repay the loan amount to the bank.