To secure a $600,000 loan from a bank, borrowers must demonstrate strong creditworthiness, stable income, and collateral. Key steps include: 1) obtaining a credit score of 700+ via credit bureaus like Experian or Equifax; 2) providing proof of steady income through tax returns or pay stubs; 3) offering collateral such as real estate or equipment to reduce lender risk; 4) selecting a reputable bank with favorable loan terms (e.g., Bank of America or Chase); and 5) submitting comprehensive documentation including W-2 forms, balance sheets, and business plans for commercial loans.

Banks prioritize borrowers with low debt-to-income ratios (ideally below 35%) and consistent repayment history. According to the Federal Reserve’s 2023 report, 70% of large commercial loans require collateral, with interest rates averaging 6-8% for qualified applicants. Collateral reduces default risk by 40-60%, as shown by FDIC data, potentially lowering rates by 1-2 percentage points. For example, a $600,000 loan with a 7% interest rate would cost approximately $42,000 annually in interest. SBA-guaranteed loans offer lower rates (5-7.5%) but require government approval, which can take 30-60 days. Private lenders may approve loans faster but charge higher rates (10-15%). Lenders also consider industry stability; construction or healthcare loans face stricter scrutiny than tech startups. Ultimately, borrowers should compare terms across 3-5 institutions and maintain open communication with loan officers to negotiate favorable terms.