Important for the loan application
- Analyze financial situation
The more you know yourself about your financial situation, the better you can choose suitable loan offers.
- Individual offer received
Based on your details in a loan application, you will receive an individual offer. Compare several of different institutes.
- Renewed loan application can be worthwhile
Even with a cancellation, a renewed loan application may be worthwhile. Some of the applications are simply rejected because documents are missing.
Anyone who wants to borrow money usually gets a loan. However, before the money enters the account, each borrower must submit a loan application. If you are clumsy you make life difficult for yourself. If you take your time and plan cleverly, you may even get better conditions.
So it works with the loan application
The most important preliminary work has been done, various loans compared and an offer have you looked? Then it goes to the loan application. Whether you, as an entrepreneur or a private person, want to apply for a traditional loan from a bank, a personal loan or a subsidized loan from a public bank, such as a KfW loan, you will almost always have to make a proper loan application.
To do this, submit the application and important documents to a bank. The bank then reviews your credit rating and collateral. The loan application is the basis of the decision on which a lender submits an offer to you and submits a credit agreement for signature.
Loan application pattern on the internet or at the bank
The loan application is a formality, but it can be crucial for lending money or not. What you need to specifically write in the loan application depends on the type of loan you are interested in.
Loan application patterns can be found on the internet. Normally, however, the bank will provide you with the appropriate document. At the branch bank, filling out usually takes place directly at the table of a consultant. Direct banks usually have forms that they send to you when you have registered with a request.
When you apply for an online loan from a bank, the Postident procedure is often used. To do this, you, as a new customer of the lender, must then come to Deutsche Post personally with your documents. This will allow the lender to confirm your identity and exclude any unauthorized person from making a credit application on your behalf.
You must specify this data
In the loan application everything is again black and white on the terms:
- interest rate
- loan amount
- running time
- Refund requests
This includes necessarily the data on the applicant and information on your personal business: This begins with address, bank account and your employment relationship and goes to the statement on the assignment of collateral, marital status, maintenance obligations and information on other loans and debts.
They also sign with the request that the provider of the loan may obtain information about you from Private credit or another credit agency. In addition to the loan application you need a number of personal documents. What exactly these are usually, you can see in the following list.
If you get ready and make copies, you’ll speed up the paperwork and ultimately the time to pay off your loan.
Additional documents required
- Copy of your identity card. Or the original for comparison in the postident procedure.
- Truthful self-disclosure. If you make false statements here or if, for example, you do not conceal the fact that you currently have ongoing loans, this is punishable and will be prosecuted as a credit fraud.
- Salary statements for the past two to three months. These can be, for example, the monthly statements on income tax deduction.
- Bank statements of the last two to three months. When you keep your account online, your bank’s printed PDF bank statements will suffice. You do not necessarily need original printouts from the bank statement printer in the store.
- Consent to the inquiry at the Private credit, the so-called Private credit clause. You do not have to present a document yourself, the Private credit score is obtained independently after approval by the bank
Special case self-employment
Self-employed and freelancers usually have no fixed income. Therefore, they can not teach salary statements. You must submit business evaluations in the form of balance sheets, as well as income tax assessments of the last 2 to 3 years when applying for a loan for self-employed. The bank can also demand income and surplus invoices.
Apply for the credit step by step
Get an overview and determine the loan amount
The first step in getting a loan that suits you is to have a good idea of your financial situation.
It is best to keep a list of all income and expenses such as taxes, rent, insurances, telephone, petrol etc. for several months. For example, a household book can help in that they regularly enter expenses and revenues. This gives you a complete picture of what you have in your money every month, what’s due for expenses, and how much is left over for a loan.
With the household calculator, you can quickly get an overview of your income and expenses. Anyone who generally has little left over at the end of the month is well advised to orient themselves when it comes to credit. Otherwise, the path may lead to debt.
Consumer centers and debt counseling
In case of doubt, consumer advice centers or debt counseling services also provide clues as to how you are financially positioned and do not live beyond your means. Counseling can help to determine whether borrowing is necessary and useful and in what amount. Then you will also find out how high a loan amount could be but that does not overwhelm you.
The insights from the analysis of your financial situation help you in the second step to compare loans. Take a look at different providers and use the credit comparison for a comprehensive overview of your credit. Pay attention to offers especially on the effective interest rate.
In contrast to the nominal interest rate, providers must factor in almost all costs into the effective interest rate. With him offers are comparable. Also pay attention to account maintenance fees, which some providers still require. All in all, this can make a tempting offer significantly more expensive than initially suspected. This also applies to residual debt insurance, which is often offered with.
The loan application is not yet binding on the applicant. This is not a contract. Rather, this is the first time for your situation specifically checked whether you can even get credit and what conditions you can offer.
If you will, in addition to the online loan comparisons, the loan application is the means for individual credit comparison. For credit-related loans, many providers specify interest margins. So it may well be that you get offered at a specified interest rate between 5.9 and 12 percent rather a loan at 10 percent than one to 6 percent. There is a legal regulation for this: providers always have to declare a so-called two-thirds interest. That is the interest that two-thirds of all customers receive there. This should prevent advertising with low showcase interest rates, but in reality hardly anyone will get them.
Make a loan application
If you have compared different offers from different banks, you can apply for credit and fill out one or more applications. The design of the loan application usually take over the credit providers, for example by online forms.
If you have someone to take the credit with you, not only his data, but also his documents and evidence to the application, as well as his consent to the Private credit information. If the lender does not provide you with a form, you can look around the internet for suitable forms for a second borrower.
Then you can file the application with the branch office and submit it to someone who can tell you right away whether you have forgotten documents or information. For online banks, you generally need to participate in the Postident process. A corresponding document is usually attached to the loan documents.
Examination of the loan application
Once the documents have been sent or handed over, your credit application and the submitted documents will be examined. It may take some time to get feedback.
Because the potential lender must clarify some things in the credit decision process. If you have forgotten individual documents, you do not automatically forfeit your chances of getting a loan. In general, the potential lender will inform you and you can submit the documentation.
The credit decision process
If only one employee were involved in raising or lowering the thumb, it would be quick. But the credit decision process is a careful examination of the documents.
- The exam
As far as possible, the personal impression of the credit applicant will be assessed and the purpose of the credit will be assessed. Last but not least, the lender must also look at the so-called risk profile and inquire at the Private credit, evaluate the documents and documents, etc. At the end of these checks in addition to the market department and the back office department must give the green light. Then the way is clear for your credit.
- The waiting time
How long you have to wait after the application until the money is in your account varies depending on the provider and your financial situation. From three days to several weeks, many things are possible. You should, especially with larger loans such as a real estate loan, possibly take a lead of several months. Because in addition to the analysis of your own situation, even a thorough credit comparison with the solicitation of many offers can be time consuming.
However, once a suitable offer is found, it can go quickly from the application to the granting of the loan. If you have not heard anything after a few weeks, it’s best to check back with your provider.
Rejection of the loan application, what now?
If the bank refuses to grant you the loan you have applied for, there are several reasons. In most cases, a rejection has to do with your credit rating and the bank does not consider you sufficiently creditworthy, at least for the loan amount requested. But you should not throw in the towel right away. With a few tricks you may still get credit.
Reduce loan amount
For example, you can submit a new application for a lower loan amount. The attempt can be worthwhile. Sometimes negative Private credit entries are the reason for a cancellation. Use your right to a free data overview at Private credit and, if necessary, clean up your entries.
Credit inquiries can worsen the Private credit score
So-called “credit inquiries”, which the banks make to the Private credit, can worsen your Private credit score.
Make sure that the banks only pass on so-called “condition inquiries” to Private credit if you have only obtained offers – that’s the case with FinanceScout24. These have no influence on your Private credit score.
Second borrower in the loan application record
If you have not already done so, you can try to include a trusted person in the contract. However, a co-applicant should have a good credit rating, otherwise the bank will not consider it a further security and will not accept the co-applicant.
Another option is to offer the bank a guarantor as extra security.
questions and answers
How long can I revoke the contract?
Consumer loans are loans that are aimed specifically at private individuals. These include installment loans or loans for mortgage lending. As a consumer, with every consumer credit you have the right to spend 14 days considering whether you really want the contract. You can revoke the contract in these two weeks.
About your right of revocation, the contracting party, who gives you the credit, informs you in writing. For the actual revocation of a contract you take a registered letter with acknowledgment of receipt. So you can prove that the revocation was received there.
How do I react to form errors in the contract?
If a consumer loan agreement contains formal errors, it can also be terminated before the end of the contract term and the remaining debt repaid at once. Sometimes, however, a so-called prepayment penalty is due, which must be paid to the bank in addition to the remaining loan amount. Under certain conditions, you can also get these prepayment fees back. Let us advise you best from a consumer center.
As long as you do not cancel installments or stop payments on your own, a revocation of your credit agreement should generally not be reported to Private credit. The fact that no negative entry ends up there, however, can only be said with 100% certainty, if you catch up there with a data overview or self-disclosure.
What do I have to do if I can not repay the loan?
If you get credit but can not repay the loan after a certain amount of time, it is best to contact the bank immediately. Discuss your problems and work together to find a solution.
Whether and when you can cancel and repay a loan or loan depends on the type of loan. You will find information on this in the fine print of an offer. For example, for loans with a fixed rate of interest, which still expires during the loan, a right of termination applies only until the end of the fixed interest period. Variable rate loans, on the other hand, usually have a notice period of three months.