Asking a bank loan today is not an easy task. You will have to meet requirement after requirement to earn the trust of the entity and end up granting it. But what are those conditions?
The economic crisis, among other vicissitudes, has brought with it the closing of the tap of bank loans. Companies and individuals have had very difficult access to bank financing during these years. Today there is a more active flow in these concessions, it is still insufficient. Companies still need a capital injection to develop and generate employment, and individuals who want to undertake or need liquidity for their personal projects, continue to encounter barriers in their path.
Requirements for bank financing
There are numerous financing alternatives, but many still resort to the traditional method, which requires a heavy rosary of procedures without much guarantee. Use the bank in question and request the loan. Then, the bank studies your expenses and income and checks whether or not you can grant that loan and, if possible, under what conditions.
The bank will study your salary, your job security, the equity you have, your family situation if your name appears on a list of defaulters. Or if you already have credits granted. Since they can’t exceed 35% or 45% of your income, depending on the salary. All these variables analyze them and take them into account. For example, a couple with a monthly income of € 3,000 (between them), with a fixed contract for five years, free of charge and with about € 26,000 in their savings account, they want to ask for a loan to buy a house, with these requirements it seems to have everything in its favor. However, the most normal thing would be for the bank to close the door of financing, due to distrust.
So, when can they give you a loan? From Delancey Street, the advice is to save some money before requesting any type of loan. It can be a bank or another type of financial institution. Not only because it provides solvency to the operation. In addition, the entity will be more receptive and the interest to pay will be reduced. If you buy a house for 150,000 euros and give 50,000 entries, the value of your credit will be about 100,000 euros, so you will save the interests of the other 50,000.
Delancey Street has prepared a list with all the aspects to consider when applying for a credit or in what circumstances you should know that it will not be granted.
- Never above 40% of your salary: Most of the entities will not grant you a credit if the bill that you will have to pay month after month exceeds this percentage of your salary. But it is not recommended, also, for many reasons. Keep in mind that if nothing else to start the month you are almost half of what you charge and you have to continue paying expenses such as electricity, water, food, gasoline, etc. All your money will vanish without being able to give you a single whim.
- Do not get into more than one credit: Even if you think you can get there, if you already have a credit because you bought a car, maybe it is not the best time to request another one. In the own entity, it is very possible that they do not allow it.
- Check your contract after the labor reform, dismissal is much simpler. If you do not have a fixed contract that provides certain guarantees to the bank and yourself, it is better not to go into debt.
- Check the interests: At the beginning, you will pay more interest than capital, especially in the case of a mortgage loan. You should get a reduced differential, and it is true that today they are quite low, so in this sense, you are facing a good time.
- Amortization: If you save an amount you can contribute it to the bank, reducing your debt and the interest payable. This must be specified in the clauses of the credit.
Check each of the points that the entity will request and make your own calculations, then you can go for your credit safely.