Apply Loan: 6 Information to Check Before Asking for a Loan

Before contacting a financial company or bank there are a series of information to request a loan that should be acquired or verified. In this way, it is safer to obtain favorable conditions or avoid any problems that could lengthen the whole or even cause a denial of the application presented. If you want to know more about why you are looking for a loan, continue reading and you will find out what is the main information to check before applying for a loan.

What type of loan should I apply for?

Among the information to request a loan, the first is certainly related to the type. Different types of financing can be requested according to your needs. If you need a lot of money to buy a house, you need a mortgage. If you buy appliances or household items, the easiest solution is the finalized loan.

If you need liquidity to realize projects or dreams in the drawer, you can request a personal loan or, even better, a fifth assignment, which allows you to access even higher amounts and with greater ease.

Information for applying for a loan: the requirements

Each loan has very specific requirements to be met to obtain it. For example, the assignment of the fifth is reserved only for employees and retirees. Employees then, to access them, must be hired for a certain period and have a permanent contract, while retirees cannot exceed a certain age.

Other requirements are the presence of additional financial commitments. For example, mortgages are not granted if the sum of the mortgage payment and other commitments exceeds 40% of the monthly net income.

Information for applying for a loan: Documents

Among the information to apply for a loan, there are the documents. In addition to the classic identification documents (identity card and tax code), the latest payslips or pension slips are usually requested. In the assignment of the fifth, documents relating to the work being carried out are also required, such as the salary certificate or, in the case of retirees, the Obis M. If you then consider the mortgages, the documentation is much more extensive, think of for example to the documents of the property or those relating to one’s income situation.

Interest rates

The TAN and the APR are indicators of the convenience of a loan, therefore they are extremely important.

The TAN is the net annual rate, the pure interest rate applied to the loan. It is the annual interest calculated on the loan, that is the price, in percentage and on an annual basis, requested by a creditor on the disbursement of a loan. The APR is the annual percentage rate, represents the total cost of the loan, and also includes all expenses. The APR is therefore the effective indicator of the real convenience of a loan.

Safeguards

Some loans are covered by a mandatory statutory policy, such as the assignment of the fifth. In the case of assignment, the policies serve to cover the risk of premature death and loss of work.

Other loans provide for optional coverage, such as mortgages. In this case, they can be very useful to protect yourself from any inconvenience.

Repayment plan

Among the information to apply for a loan, we must not forget how the repayment plan works. Often you have to pay the installments independently but this is not always the case. With the assignment of the fifth, it is the employer or social security institution that pays the installments every month.

This way you don’t run the risk of paying late or forgetting deadlines. Another extremely important piece of information is what happens in case of late payment of the installment or even in case of impossibility. 

In the event of non-payment, inaccurate or delayed payment, the financial institution is obliged to report a bad payer to the databases. This aspect should not be underestimated because in the event of a request for a new loan this report could weigh and lead to a refusal of the application.

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