VALUATION OF ASSETS TO BANK LOANED

Property appraisal is very necessary to carry out many different business activities such as: buying, selling, transferring, investing, contributing capital... This is especially important in getting a bank loan. is the first basic activity for the bank to consider the customers ability to accept loans.

How to appraise property for a loan?

Currently, in order to fulfill the purpose of buying a house, car, investing in business expansion, etc., customers often go to banks to get loans. Especially, large enterprises often have a lot of business and investment activities, so getting a bank loan to finance these activities is extremely necessary.

To get a bank loan, the first thing you must have is collateral. The more valuable the collateral, the higher the credit limit for the loan. The lower the price of the collateral, the lower the loan limit, so it is difficult to meet the needs of customers.

Depending on the value of the loan and the purpose of the loan such as business, real estate investment, tourism, etc., we can use many different types of collateral. The more valuable the collateral, the more likely it is to secure large loans with high credit limits. In contrast, low collateral assets, prone to price fluctuations, will often find it difficult to bring the desired loan amount of customers.

What is collateral?

Collateral is property that the guarantor uses to secure the performance of a civil obligation towards the secured party. Collateral can be existing assets or assets formed in the future and can be traded, including:

+ Existing objects: means of transport, machinery and equipment, production lines, raw materials, goods...

+ Valuable papers: Sales contracts, savings books, stocks, bonds, and other papers that can be converted or valued in cash.

+ Property ownership or use rights: Certificate of land use rights, ownership of houses and assets attached to land (red book, pink book) copyright, intellectual property right, right to contribute capital business rights, rights to exploit resources, and other property rights…

Purpose of collateral appraisal

- Determine the market value at the time of borrowing of the appraised property.

- Determine the legal nature of the property

- In-depth analysis and assessment of the living environment and business environment of the appraised property

- Offering valuation methods suitable for each type of asset, helping customers and banks to better see the value of the appraised property.

- Ensure the results are close to market prices, satisfy customer requirements and avoid safety risks for the bank.

Appraisal to get a bank loan means a bank or a valuation company checks, considers and analyzes the collateral to determine the loan limit for the customer. Each bank has a different appraisal method to determine the final value of collateral.

This is the basis for the bank to decide to accept your loan and limit the risks and bad debts before lending. Depending on the loan needs of the customer, the bank will require different appraisal properties.

To learn more information about this issue, please contact us for support. Indochina International Appraisal & Investment Joint Stock Company (INA) with many years of experience in the field of appraisal with abundant data warehouse, a team of professional appraisal experts, highly qualified, process appraisal fast, closely, minimizing appraisal costs... Besides, INAs SUNVALUE service will provide customers with information about the value of the business with high reliability for each appraisal purpose.