loan policies

Loan policies are the rules and guidelines set by lenders that determine how loans are approved, managed, and repaid. They specify who qualifies for a loan, how much can be borrowed, interest rates applied, repayment terms, and conditions for approval. These policies help ensure responsible lending by assessing financial stability and ability to repay. They also protect both the lender and borrower by establishing clear expectations and procedures, such as required documentation, credit checks, and collateral if needed. Overall, loan policies aim to make borrowing fair, transparent, and manageable for all parties involved.