What is a loan application?

The condition query before the loan application

The condition query before the loan application

Before the actual loan application is first a condition request at the desired bank. You provide information about yourself, your place of residence, the desired loan amount and, if necessary, the purpose of the loan. The necessary information depends on the type of loan. For a consumer credit, you have to give less information than for a home loan. The bank will then check your details and make you an individual offer that is based on your credit rating. Incidentally, the bank carries out a credit check even if the loan is marked as being independent of creditworthiness. In this context, credit-independent means only that all customers who have a sufficient credit rating receive the same interest rate. The bank therefore sets a minimum credit rating, from which all customers may apply for a loan. The story is on http://remdirectory.com/paying-off-payday-loans-help-from-online-payday-loan-consolidation-companies/

After the condition inquiry – the actual loan application

After the condition inquiry - the actual loan application

If you agree with the bank’s offer, the official loan application will be accepted. In this all information about the terms of the loan agreement are already noted and you receive all the relevant conditions that apply to the loan. As a rule, the bank or credit institution additionally requires identification by means of a copy of the identity card. For on-line loans, you must complete either the post or video procedures. In the PostIdent process, you identify yourself in a post office of your choice, while the video process requires only a webcam and a telephone. You will then be contacted by an agent via video chat, who can legally identify you. For identification, you only need a valid identity card or passport when calling.

After the application – payment and start of repayment

After the application - payment and start of repayment

Once the credit institution has received all the documents and you have identified yourself with one of the procedures, you will receive a short confirmation letter stating the successful conclusion of the credit agreement. Depending on the terms of the loan agreement, repayment of the loan will commence either the following month after full disbursement of the loan or at an agreed later date.

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