When the money does not come for something we want to buy, many times the solution that comes to mind is bank loans. But what exactly are they? Are there various types?
If you are currently in the position of asking for one but you do not know if it is the best choice, here we are going to talk to you at length about all this so that you know what you can expect.
What are bank loans
According to the RAE, a bank loan is conceptualized as a «amount of money that is requested, generally from a financial institution, with the obligation to repay it with interest«.
In other words, we are dealing with an interaction between the bank, which takes on the role of lender, and that of a person who needs that money, the borrower. Of course, to lend that amount of money, a series of interest rates must be applied, that is, some "extra earnings" for which it is profitable for these banks to lend that money.
Although in most cases bank loans are requested by individuals, the truth is that there are also many others focused on companies since they can also request them.
Actually, the final objective of a loan is none other than to grant a certain amount of money to a person or company so that it can buy or pay for a certain service or purchase. However, the truth is that there may be several reasons that move that borrower to apply for these bank loans.
What are the most important elements of bank loans
When applying for a bank loan, you must take into account the fundamental elements that you must understand perfectly. Namely:
- Capital: which will be the amount of money requested from the bank. Be careful, because this may not be the one they give you in the end, since later the bank can access, deny or give another proposal.
- Interest: is the price that the borrower will have to pay for lending the capital. It is extra money that is calculated in each loan by the banks.
- Term: It is a period of time that person would have to return all the requested capital as well as interest.
Types of loans
Many times, when thinking about bank loans, one type always comes to mind, and yet there are several that can be requested. To be clear, these would be:
- Personal loans. They are those that serve to finance a specific need of a person at a given time. In this case, they can be:
- Of consumption. Also called credit. They are used to buy a good that can be durable, such as a car.
- Rapid. They are those that are accepted very quickly, although in many cases they may have a much greater interest.
- Of studies. As its name indicates, they are the ones used to cover tuition and expenses generated in the studies.
- Mortgage loans. Whose purpose is to have the money to finance a home, a business, a place, etc. These move higher amounts of capital and often require a guarantee to be granted.
How bank loans are requested
Have you made the decision to request a bank loan? So the next thing you need to do is know where you have to go to get it.
In Spain there are many types of lenders that you can go to, but if we talk about bank loans, the main places are:
- Benches. A clarification is that you can request a loan both in Spanish banks and also in foreign ones as long as they have representation in Spain.
- Savings.
- Cooperatives of saving and credit.
Apart from these places, a loan can also be obtained through private equity companies (which act as lenders) or even through supermarkets, stores, credit card companies and credit platforms between individuals.
As a general rule, the first place you will inform yourself will be your own bank, and if he rejects you, or the conditions are not favorable for you, you will go to other banks or savings banks.
What requirements must you meet?
Do you want to know what they are the requirements What are banks going to ask you for when you want a bank loan? We start from the premise that each bank may require different requirements. So if you are rejected in one place, you can always request it in another place.
However, in general, there are some important requirements that must be taken into account and they are the following:
- Have more than 18 years. That is, being of legal age.
- Have a valid ID. This is important, although if we take into account that the DNI can be obtained from the age of 14, the vast majority would meet this requirement.
- have solvency. Here we must clarify. On the one hand, you have to guarantee regular income, that is, show that you are going to be able to repay the money that they are going to lend you. This does not mean that you should have everything, but enough to take care of the monthly installments that will make you pay.
- offer a guarantee. It is the so-called guarantee of payment or endorsement. Some bank loans do not request it, especially when the amount to be lent is low, but in other cases they do.
- Not be on the delinquent list or have defaults. If you are on that list or you have defaults, they will not grant you the loan, although in these cases you can go to private companies since some do not take this requirement into account.
In addition to meeting these requirements, you must also have a series of documents at hand that will speed up the procedures much faster. In this sense we speak of:
- DNI or NIF.
- Bank account (The number is important to know where they would have to enter the amount of the loan.
- Latest payroll or employment contract (to ensure you can return it).
- Statement of income.
- Properties in your name.
Apart from these documents, the bank can always request more before even making the final decision.
Now that you know everything related to bank loans, it will be easier for you to identify the clauses, requirements and everything you need to know about them. Doubts? Consult us without commitment.