HOW TO OBTAIN A PERSONAL CREDIT FROM A BANKING ESTABLISHMENT? To finance a personal project, most people use bank loans. Although credit organizations are taking steps to facilitate access to credit, there are always steps to follow. In this guide, we will review all the formalities for obtaining consumer credit, more specifically a personal loan.
Applying for a personal loan: the steps
Personal credit is used to finance the purchase of property, the carrying out of repair work, etc. It is aimed at all individuals who wish to acquire funds to bring their projects to life.
To apply for a personal loan, the first step is to contact a lending institution. This is obviously your bank. Currently, neobanks are the most requested to make this type of credit. These establishments, in addition to being more accessible, have more interesting APRs.
It is also possible to take the steps with the help of a broker. In this case, the latter takes a commission, the amount of which depends on the amount borrowed. He accompanies you in all the steps to applying for a loan. This is in order to put all the chances on your side.
Once the request is in the hands of the bank, studies and analyzes are carried out to see if you are able to proceed with the reimbursement under the best conditions. This includes studying your solvency, your debt situation, your borrowing and repayment capacity, etc.
The conditions for obtaining a personal loan
The study of your loan application takes into account many points. The validation criteria vary depending on the lending institution. Online banks are, however, more flexible and accessible. Also, the rates offered are more attractive. This is because these brands have significantly fewer costs compared to traditional banks (reduced staff, absence of costs related to the maintenance of the premises, etc.).
In any case, the following points are studied:
The professional situation
Obviously, the professional situation of the borrower is the first criterion to be assessed. Your status within the company, your monthly income, your contract, your age, etc. These are the aspects that your banker will study.
The personal situation
The family situation will also be taken into account. How many children do you support? Do you rent or own your own home? The answers to these questions will also be analyzed.
The banking situation
The study of the banking situation consists in seeing if you have outstanding debts. This helps to see if you have had a history of repayment issues.
These different points are used to see if you are solvent. Also, it is to study your borrowing and repayment capacity.
Namely: the banks ask that the subscription of the loan be concomitant with the borrower insurance. It is not mandatory, but it is nevertheless recommended.
When your request is validated, the financing organization will provide you with a document that will contain all the information about your loan. These include, among others:
- Information about you (identity, address, etc.);
- The type of credit you take out (in this case, the personal loan);
- The amount of the credit (200 to 75,000 euros);
- The duration of the repayment;
- miscellaneous costs;
The withdrawal period.
As a reminder, a personal loan can be used to buy a property or finance a project. This is without the precise destination of the requested funds being indicated in the contract between the borrower and the bank.
In addition, it is important that you have all the information on the prepayment. What are the terms? What about fees? The terms of prepayment differ from one institution to another. Hence the importance of also taking this aspect into account when making a comparison.
Here is all the information you need to know about personal credit. For the time being, this is the most requested means of financing. It is quick and easy to access. Especially, if you are moving towards an online bank.