2023-12-24 14:34:18
Bank loans represent a component in the financial life of individuals and companies, serving as a way to access capital to cover needs and aspirations.
The dynamics of loans are diverse and cover a wide range of purposes, from the desire to get a home to business projects. Throughout this process, banks evaluate applicants’ ability to meet their financial obligations.
Financial institutions typically require documents showing sufficient income to meet loan payments. In addition, they request evidence of job stability, which varies from 6 to 18 months depending on the applicant’s profile.
Basic conditions that banks study to grant a loan
When it comes to applying for a loan, whether through physical or online financial institutions, there are common requirements that most banks require of those seeking financing.
The age of the applicant
One of the fundamental requirements is to be of legal age. Having a credit history and having a regular income are difficult conditions to meet for those who are not yet 18 years old.
Another thing that is taken into account is that the applicant is not older than a few years. You have to think that banks will not take the risk that a person may die before having fully recovered their money. This is why, generally, the age limit is set at 75 years, although it depends a lot on each bank and the personal situation of the applicant.
Demonstrate solvency and have stable income
The applicant must demonstrate that they have the financial capacity to return the money borrowed. This involves demonstrating consistent income that exceeds the monthly obligations acquired with the bank. For example, if it is agreed to repay €300 per month, sufficient income will be required to cover that amount without compromising the financial stability of the applicant.
Those who have stable income, permanent contracts, solid experience in a company or are civil servants have greater opportunities to obtain financing.
Other requirements necessary to meet
To apply for the loan, it is essential to be aware of the required documentation and possible additional requirements. These are the essential documents to present:
DNI or NIE. Current account number: the loan deposits will be made there. Photocopies of the latest payslips or justification of regular income: if you do not have payslips, a document that supports regular income is also useful. Work life: helps the entity to understand your stability and continuity in the workplace.
If you are self-employed, you may be asked for additional documentation, such as:
Photocopy of the self-employed registration document: to verify your status as a self-employed worker. Latest annual VAT declarations and installment payments of personal income tax. These documents are necessary to evaluate the financial and tax situation of the self-employed person.
Although requirements vary between banks, having basic documentation speeds up the process and improves the chances of approval.
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