Request a loan from a financial institution is a process that takes time and, in addition, forces the applicant to give a few turns in the head to be sure of what you need. It is a contract and as such can not be taken lightly. The borrower must be aware that in a certain time he will have to return the requested money plus interest, commissions, and expenses. However, a loan is not a single thing and the bank that grants it has to look after their interests and assess whether the applicant has the ability to pay back the loan. To achieve this, there are a number of conditions to request an unsecured loan that you have to fulfill in order to be granted this financing. There is no Asset or Property Tied to Unsecured Payday Loans.
Conditions that the applicant of a loan must meet
At the time of granting a loan, whatever the type, each financial institution can establish different conditions. It will depend on the bank’s risk policy, the amount of money it lends, and the purpose. Despite this possible disparity, there are common requirements that all banks require from people who come to them in search of a loan. Among others, are the following:
- Be of legal age: banks need to make sure that the borrowed money will be returned to them and that is only possible if the applicant has a stable credit history and regular income. Two difficult conditions to meet if you are underage.
- Solvency and stable income: or in other words demonstrate that the borrowed money can be returned. To fulfill this, the person requesting the loan must show that he has a stable income and, in addition, superior to the obligations acquired with the bank. For example, if you remember that each month you will have to return € 300 of the loan, you will need the income that will allow you to do without that monthly amount.
Seeing these general requirements to request a loan, it is easy to guess that people with regular income or with an indefinite contract, with seniority in the same company, or if they are public officials or employees will have more facilities to access a loan.
What is the personal guarantee?
When applying for a loan, it is necessary to be aware of a general principle of our Law set forth in article 1911 of the Civil Code and which stipulates the following: “The debtor responds with all its assets, present, and future. “This means that the debtor has the obligation to face the amount agreed with the bank making use of all its current and future assets. When the operation involves more than one person as co-owners of the loan, two types of guarantees or personal responsibilities can be given:
- Joint and several liabilities: the bank goes indistinctly against one of the debtors for 100% of the amount of the loan and then between holders can claim the agreed amounts for each one.
- Joint liability: each debtor responds to the bank of a certain amount of the previously agreed loan, totaling 100% of the loan.
Necessary documentation and additional requirements to request a loan
Depending on the bank in which the loan is requested, more or less documentation will be required. The most usual thing is that the loan applicant must provide the bank with his / her NIF or NIE, the current account number where to deposit the money, the photocopy of several payrolls and any other regular income that he/she receives, his work history so that the bank get an idea of your relationship with the companies in which you have worked, the last income statement, the simple copies of the real estate and assets you own and the information relative to other loans in case you had them.
In addition to all this documentation, if the applicant of the loan is self-employed, he/she may be asked to include a photocopy of the self-registration document, the last annual VAT declaration and the last installments of the IRPF.