There are many people who need or want a loan. Mostly for the dream of owning a house, for a car or for starting a business. But the bank has its requirements, which every prospect has to “struggle through” before it gives the stamp to approve the loan requested by the customer. The conditions are always the same. See for yourself what you need to take a (big) step closer to your loan.
Basic requirement is age
At the age of eighteen you are fully legally competent according to $ 104, 106 USD. But that does not mean that you have the permanent possibility to take out a loan until your death.
From an age of around 65/66, the whole thing becomes more difficult again, because the banks not only have the prospect of being eighteen years old, they also have certain age limits in their controversial catalog. At about the beginning of the pension, trust slowly ends and the banks no longer consent to the elderly.
Borrowing at an older age is therefore difficult for older people, and is probably difficult to achieve. According to the banks, the repayment of the loan is simply no longer guaranteed and is therefore a problematic matter that usually ends with a “no”.
People who want or need a loan must live in their own country. A fixed place of residence must be offered by the interested party and is a basic requirement of all banks. It is therefore not possible to apply for a loan domiciled abroad.
Employees who earn a regular wage or salary are generally not a problem for the banks
The credit institutions are sure that the loan will be repaid to them and employees who need the loan will get it if all the conditions are met probably get it too.
However, the situation is different for people who are in a limited-term employment relationship or in the trial period. It becomes difficult to impossible here because a secure income and therefore repayment is not guaranteed. The same applies to pensioners. Banks are unlikely to accept regular pension payments as the basis for a loan. Approval is likely to be difficult here.
Now for the self-employed. Most of them may probably earn a lot more a month than employees. Even so, they have lower chances of getting a loan than the latter. The reason for this is that credit institutions do not have the highest confidence in the income of the self-employed.
In other words, these people can earn as much as they want. In the long term, banks believe there is no reliable income.
The institutes need a feeling of reliability, repayment and
punctual interest gain. Self-employed people who need a loan are therefore quite shaky candidates when it comes to lending.
Prerequisite for banks is solvency or creditworthiness
What you need is a clean Schufa account with clean entries, because with bad you leave a negative impression with the institute. Irregular payment behavior for loans that have already been approved in the past will only make your reputation even worse. Therefore, make sure that you have a well-managed Schufa account in your pocket, otherwise you will lose the necessary trust on the part of a bank and therefore probably also the approval.
What the banks mostly expect or need from you is your own idea of the amount of the monthly loan installments for you. The lender will surely not give you the “stamp” for the loan if the monthly installments are too high compared to your income. So think carefully about how you can adjust the rates to your own monthly income. Of course, you can also get advice from your bank and develop a joint draft that works for both sides – both for you and for the lender.
In summary, banks attach great importance to trust, repayment and their own profit. You need to meet all the basic requirements that every prospect has to “torture” through. However, these are the same for every bank. If you meet all the requirements, you do not have to worry much about the “stamp”. Good luck!