Do you need financing for the purchase of a new car or the remodeling of the kitchen? Do not worry, a personal bank loan can solve all your problems. And if you do not know how to ask for it, here is a guide that explains step by step how much, where and how to request it.
There are many reasons to want to ask for a personal loan from a bank.
Indeed, today, thousands of people choose this type of product when looking for the necessary financing to carry out their projects.
However, going to the branch of the bank to apply for a loan can be a challenge.
And without good is true, financial institutions are always available to grant money to those who require it, they have very precise guidelines.
Therefore, it is important to know all the steps you must take to get approval and certain important aspects when applying for a bank loan ( differences between loan and credit, commissions, etc.).
1. Determine the amount of the loan
The first thing to do before applying for a personal bank loan is to determine the amount of money you will need to finance the project.
A new car, replace the old washing machine, a vacation in the Caribbean… whatever the reason, it is important to know in advance the amount you want to request.
2. Know the entities that offer this type of product
The second step to obtain a bank loan is to find out which are the financial entities with which this type of product can be requested.
It is important to know that in Spain there are several types of lenders, however, the best known are banks.
Among the entities that grant personal loans are:
- Spanish banks
- Foreign banks
- Savings Banks
- Savings Cooperatives
3. Compare the market offers
The third step will be to compare the different financial offers of the market.
It is very important to pay special attention to the amount of the loan, the term, the interest rates and the commissions.
In order to evaluate each loan in detail, you can visit the comparison of personal loans, where all the offers of the main financial institutions of Spain are gathered.
4. Make a projection of the installments to pay
The next step, and once you know the characteristics of the loan that interests you, is to evaluate if your financial condition allows you to pay the installments stipulated by the entity for the chosen product.
Carrying out a projection of tickets and expenses will allow you to know if the monthly cancellation of the loan will drastically affect your economy or not.
5. Find out about the requested requirements
The fifth step is to know what are the requirements requested by the bank or financial institution you have chosen.
In Spain, a large part of these entities have the same requirements. Among them are:
- Be of age.
- Have an identification document (ID or passport).
- Demonstrate an economic solvency according to the amount to be requested.
- Submit an Aval (you have to meet the same requirements).
- Justification of income (3 last payslips or VAT declaration for the self-employed).
- Work contract.
- Not be included in any list of defaulters.
- Do not have current debts with defaults.
Do not forget that these are the requirements that are requested in most financial institutions, however, each is free to ask for additional documents.
6. Question about special conditions
The next step is to ask the financial institution with which you intend to sign the contract on the special terms of the loan.
Do not forget that, in some cases, the client is required to contract other types of products as a condition for loan approval.
Among them, the most common are:
- Direct Payroll
- Address of receipts
- Hiring different types of insurance
7. Read the contract and the fine print
If you have already chosen your loan and the financial institution with which you want to hire it, it is important that you look at all the points included in the document and that you read, above all, the fine print.
Among the aspects that you should pay special attention are:
- Interest rates
- Contract bindings
- Amount of the fee
- Lack of loans
- Specific clauses
8. Wait for the bank’s response
Once the loan application is deposited, the last step is to wait for the response from the financial institution.
This will evaluate the risk factor you represent for them and decide if it is convenient or not to grant the financing.