Currently, in many financial institutions you can take out a loan or even a loan with simplified formalities. This is a very popular solution, especially among people who want to borrow money quickly or do not have an ideal credit history and are therefore afraid of refusing the bank. Fewer formalities often work in our favor. However, such offers may also have minuses. What should you know about loans and credit claims?
What are the simplified formalities?
When you go to a bank and want to apply for a loan, you must always bring a valid ID card and proof of income with you. Most often, working people are required to have a current income certificate issued by the workplace. This document is only valid for 30 days, so you must apply at this time. Civil law contracts or having your own business as a source of regular income are also increasingly accepted.
However, you must show income for the last six months, not once even for the last year. When applying for a loan, especially in loan companies, you also need to have any income confirmation and identity document. So the number of documents that you need to show can be quite large.
In addition, banks obligatorily check their clients in databases such as the Credit Information Bureau and the Banking Register, and often also in the National Debt Register. Loan companies, contrary to appearances, also check whether the client is reliable, but here the most visited base is BIG InfoMonitor. This check may also take some time and customer approval is needed.
So what does the offer with simplified formalities mean? Instead of bringing a certificate of income from the workplace, you can get a loan for a statement of income that you make yourself. In addition, in the case of non-bank loans, this may also mean that the customer has not been checked in the database and the loan amount has been withdrawn to the bank account within a few minutes of accepting the application.
How does the statement work?
The income statement by the borrower is just as important as the income certificate issued by the employer. Why? Both methods confirm the amount of income achieved by the client. In addition, you can include many in the statement, because the loans on the statement accept a lot more different sources of income than banks, and so you can add them together or fill in a few lines, depending on how the application looks. However, remember not to stretch the amounts. They must be factually correct, as must, for example, a certificate.
Why? Well, if we provide the data of the company in which we are allegedly employed, and so we are not accused of trying to extort a loan based on providing false information. You can receive a prison sentence of up to 5 years for this crime. Although a fine may also be granted. So, having the message that false information is punishable by providing false information, loan companies and banks are counting on customers to provide only information that is accurate.
What is the difference between a loan and a loan based on a statement?
A loan for a statement can usually be taken online. And even by logging into your online account and submitting the application in this way. However, most banks limit these loans to the maximum amount that can be borrowed. They may differ depending on the bank, but it is usually a cash loan or for installment purchases of up to USD 10,000. On the other hand, a loan based on a statement may amount to several thousand USD and we will also complete all formalities via the Internet. You can also choose from different types of loans.
So you can take the statement:
- bank loan when we are a regular customer and we also have ROR in them
- online loan, usually up to USD 10,000
- installment loan for internet shopping
- a non-bank loan from a loan company representative
- non-bank loan via the Internet