The lending procedure.The steps of a lending process .

The lending procedure.The steps of a lending process in the practices of a Hungarian commercial banks.

The lending process in Hungarian commercial banks involves the following steps : 
1. Loan Application: The process begins when a Company submits a loan application to the bank. This application typically includes information about the purpose of the loan, the requested amount, and the borrower’s financial situation.
2. Judgement of the loan: The bank assesses the borrower’s creditworthiness. This involves analyzing the applicant’s financial statements, credit history, and other relevant information. 
3. Conclusion of the contract: If the credit evaluation and risk assessment are favorable, the loan is approved. The bank specifies the terms, interest rate, and repayment schedule. The borrower and the bank sign a loan agreement.
4. Disbursement of the loan: Once the loan agreement is signed, the bank disburses the funds to the borrower. The borrower can use the money for the intended purpose.
5. Repayment of the loan: The borrower makes regular payments (monthly or quarterly) according to the agreed-upon schedule. The bank tracks these payments.
6. Control of the use of the loan :  the bank monitors the use of the loan based on the signed contract. Regular updates on financial statements and business performance are required.