What do lenders evaluate before granting a loan?
Lenders, before granting a loan, examine certain parameters and requirements of the applicant to assess the risk of insolvency and avoid it. These requirements include age, employment or pension situation, income, repayment ability and creditworthiness. Let’s see all the details together, which are essential to know to ensure that the request is successful.
Age of the applicant
To apply for a personal loan or the assignment of one fifth of the salary you must be at least 18 years of age. The maximum age to apply for it is instead 75 years for personal loans, 85 years for the transfer of the fifth of the pension .
Work or pension and income
The working situation is fundamental for lenders before granting a loan. In fact, you have to prove that you have a job . It does not matter if the job is part-time or full-time, freelance, craftsman or atypical, the important thing is to demonstrate that you have a job income. Of course, pensioners can also apply for funding.
If, for credit institutions, pension or work income is not satisfactory, further guarantees such as a mortgage or a guarantor may be required. Even the unemployed can apply for funding, but they will necessarily have to present guarantees.
The repayment capacity is the ratio between the monthly installment to be paid and the applicant’s income. By law, this value must not exceed 35% of total income because, if this value is exceeded, there is a risk of over-indebtedness and therefore the risk of insolvency also increases.
Before lending, lenders also evaluate the creditworthiness of the applicant. It is a fundamental parameter because a high reliability score gives greater security regarding the loan repayment . To obtain this information, the credit institutions evaluate the credit information in the databases of the risk centers such as the Crif , which contains data regarding the credit history of the applicant, ongoing loans, delays or non-payments, protests, insolvencies and regular repayments.
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Now that you know all the parameters and requirements that lenders evaluate before granting a loan, read our tips on how to increase the chances of obtaining a loan .
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