July 2, 2019 A loan application is a rather complicated document. Before submitting it, you should learn what it actually consists of and what to look for when completing it. What pitfalls should be considered in the application? What if the bank rejected your application? We know what can be done then.
Loan application and its elements – what should it include?
What the loan application will contain depends on the bank. However, you can list items that will almost always be in every application. Surely, the application must include:
- the amount of income,
- form of employment,
- residential address, or
- PESEL number
Important – information about marital status and family situation is also a permanent element.
Material situation – key information about the loan application
How many people are dependent on you is very important information for the bank. Provide information on current liabilities – all cash loans, payday loans, installment purchases or credit cards. Sometimes information will be requested about the property: car and apartment.
At the end of the loan application template should be all statements and consents, such as information about the personal data administrator, consent to sending a question to BIK in our case, marketing consents or other, depending on the creativity of the legal department of the institution. It is better to read them carefully.
The online loan application looks similar – the only difference is that we are not dealing with paper and the application will be signed by an authorized bank employee.
Credit applications are regulated by law under the Act of 29 August 1997 Banking Law (Journal of Laws of 2018, item 2187 i.e.) and the Act of 29 July 2005 on trading in financial instruments (Journal of Laws 2018.2286 i.e.).
What documents should be attached to the loan application?
Firstly, you will need your ID card. With it, a bank employee will be able to verify that you are actually the person you claim to be. Probably everyone has an ID card – it is a statutory obligation in Poland.
Secondly, you will probably need to attach your earnings certificate to your loan application. It is needed to prove that we are actually employed, what form this employment has and what income we achieve. Thanks to this, the bank will be able to assess our creditworthiness. You must obtain a certificate from your employer. They are usually issued by the head or the HR department. It must contain elements such as: form of employment (fixed-term or indefinite employment contract, mandate or other contract), job position and information on the amount of income, i.e. the average amount of gross income for the last 3 months.
With a modest loan, these two documents should be sufficient. If you are applying for a larger loan, e.g. a mortgage, the number of documents you need increases exponentially. It may turn out that you will need documents such as: bank statement, ZUS certificate, PIT for the previous year, preliminary agreement with the developer or seller of the apartment, copy of the marriage certificate, notarial deed.
Watch out! Traps in the loan application
Banks are not charities – they want to earn as much as possible on loans. Therefore, be careful of any additional fees, marketing consents and other pitfalls when applying for a loan. What to look for?
Read the application carefully first. There is no obligation to sign the application here and now. You can take him home and calmly read what you sign. However, the application is not a loan agreement – only when you sign it will you really learn everything about your loan.
There are at least a few ‘tricks’ that make banks try to increase their loan income without raising interest rates. It may turn out that you will need to take out insurance for a cash loan, set up an account at a given bank, or take a credit card. The problem is that the cost of the loan can then increase to such an amount that it will be unprofitable.