Preparing documents for a loan

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

When a borrower applies to a bank to get a loan, the employee talks about the conditions and procedure for granting it, and also gives a list of necessary documents for registration.

Basic documents for applying for a loan

These include papers on the amount of income, a passport, an application, as well as some additional documents for certain types of loans.

The borrower's application is registered by a bank employee who deals with loans in the application register. It contains the registration number and date. In addition, copies of all documents to be returned are made. The employee also draws up a list of accepted papers, which is recorded either on a separate sheet or on the back of the application. Documents for a loan provided by the borrower are accepted, transferred, recorded and stored in accordance with the rules in force in the bank. After all the papers are collected and executed, they are sent for the initial check.

Initial verification of the borrower

The time for consideration of the issue of granting a loan depends on its type and amount, but it should not exceed eighteen days. The countdown startsfrom the date of submission of documents. If it is an emergency loan, you have twelve days to make a decision.

Documents for a loan provided by the borrower are checked by a bank employee. This is done in order to control the information specified in the questionnaire. By checking the submitted documents, the employee finds out the credit history of the borrower and the guarantor (guarantors), the amount of debt on previously received loans (if any) or provided guarantees, using a database of individuals. If necessary, he addresses requests to other banks, organizations and enterprises that provided loans.

It would be correct to include in the number of guarantors those individuals who are connected by family ties: adult children, parents, adoptive parents, spouses and trustees. Their income level doesn't matter. This rule applies only if they are not the sole guarantors. After verification, the solvency of the borrower and the maximum possible loan amount are determined.

After the credit department sends the collected package of papers to the legal department. Based on the results of the analysis and verification of documents for a loan, the security unit draws up a conclusion in writing, which is transmitted back to the lending department.

The Loan Department may involve an independent appraiser or an employee of a subsidiary in the work (in the case of taking pledge of vehicles, real estate or other property, withpurpose of determining the value of the property). After the assessment, the specialist forms an expert opinion, which is provided to the credit department. Securities can also be used as collateral, the possibility of accepting which is determined by the bank's specialists. They also draw up an expert opinion, which is transmitted to the credit department. All documents are carefully checked, because the creditworthiness of the borrower depends on them.

Credit assessment of the borrower

Assessing this factor, all mandatory payments indicated in the questionnaire and certificate are deducted from the income of an individual. These include alimony, contributions, income tax, payment of interest on other loans and repayment of debt on them, compensation for damage, etc. To assess the creditworthiness of the borrower and the guarantor, a bank employee not only examines the questionnaires, but also checks certificates from the place of work or issued by state bodies of social protection of the population on the amount of deductions and income. When preparing documents for a loan of any kind, these papers are mandatory.

Final stage

After completing the check, the bank employee dealing with this issue forms a package of papers with his decision, which is endorsed by the head of the department. These documents for the loan are sent to the management of the department, which makes the final decision on refusal or issuance. In case of failure to provide funds, the reason is written in the conclusion or in the client's application.

After the message of approvalloan, the client must, having documents for obtaining a loan, come to the bank.