I have stable income and I don’t have any debt, why doesn’t my bank grant me a loan? This question is repeated continuously by the clients in the offices of the banking entities. And, since the financial crisis, banks have tightened the criteria for granting loans to their customers. Next, we will explain the reasons why banks have cut the flow of credit and how they are set to grant or reject a loan.
Banks grant less loans since the financial crisis
Given the objective of the national bank that the delinquency rate is not triggered, a tightening in the conditions for requesting a credit line is becoming more frequent. It is no longer enough to provide the support of an impeccable bank history, but it will be necessary to support regular and powerful income every month. Doubtful loans have been located in Spain at just over 100,000 million euros, according to the latest data provided by the Bank of Spain for the first half of the year. Despite being one of the lowest levels since 2012, it has become one of the reasons why financial institutions are being more demanding for the granting of any means of financing.
This factor has led to the requirements that banks demand from their clients are greater than before. Because if these demands are not fulfilled, of course the answer will be stronger than ever: “It can’t be.” At this time so that a loan can be approved, the financial status of the claimant will be viewed with magnifying glass. That is why it is not strange that many of these people are wondering what criteria credit institutions have to accept the demands of their lawsuit.
Study of the financial situation of the loan applicant
The first measure that credit institutions will establish is to carry out a very thorough analysis of the financial situation of the loan applicant through all bank movements. Not only in regard to the sources of your income. But also with respect to the level of indebtedness that these people have with the same or other financial entities. That is, if at that time they have contracted consumer loans, fast loans or even mortgages. If this is the case, the concession will be much more complicated. At least the conditions will be much more rigid than usual. Of course, unless they have the necessary liquidity to respond with full guarantees to the operation.
At this point, they will have no choice but to check if the plaintiffs are in any of the delinquent lists (RAI, ASNEF, etc.). Because if this is the situation, of course, there will be no opportunity to make the claim successfully. Not surprisingly, communication between banks is executed with perfect efficiency and speed to obtain this information about customers. Being one of its priorities for the application of the best filters in the demand for a funding source.
Customer bank history: Did you apply for other loans before?
Another feature on which the approval of a loan is based is based on the bank and credit history of the lawsuit. The decision on the granting of the loan or not will depend on the head of the bank branch and there is no doubt that he will gather all the information about the client. In this sense, it will affect all the data that you have about your relationship with the entity. Your relationship with it, subscribed products, solvency level and other considerations of special relevance. Not surprisingly, it is a decision that can impact the company and any supply of information will be well received by these professionals.
On the other hand, the bank statement will be the best radiography on the characteristics of the plaintiff. It will be an exceptional tool so that the status of your personal accounts can be analyzed. To the point that you will know how much money you spend and what you do. In addition, it will be a reflection on the income you have at all times. Not only from your payroll, but from other extra salary benefits. In any case, an account in red numbers will be more than enough reason to deny this request.
Tax situation of the applicant: Are you up to date with your obligations to the Treasury?
Through the Income Statement, there will be a more adjusted vision of the borrower’s borrowing capacity. In any case, if everything goes well, before making the decision, the bank will evaluate the amount demanded in the loan. In order for the concession to be approved, the amount may not exceed 30% of the income . This is a calculation that is made based on the needs of families (maintenance, housing payment, bills and other disbursements associated with their consumption). This will be a clear signal that you will not face the monthly installments of the credit line. It may even be an indication that you are a customer with a risk profile that at some time you will not be able to meet your obligations to the entity.
The bank has the final decision on whether or not to grant the loan
Finally, the approval of a loan is a decision that will correspond to the director (or auditor) of a financial entity. But it will not be a truly autonomous action since it will be conditioned by a strategy developed by the bank itself from its direction. Where the guidelines on the filters to be taken to support this important decision will be dictated.
Only in the cases of preferred customers will they have a certain margin of independence. To be responsible for elucidating who are the people who will enjoy greater confidence to provide liquidity at some time in his life. Even with more advantageous conditions than for the rest of the customers.
Which loan suits you best?
If you are thinking of reforming your home, giving your business a change of look, or, you have to face any unexpected expenses this month, in Lender Bank we help you find (and find) the loan that best suits your needs. We do it through a completely free study and without any commitment.