What documents are required for an online loan?

More and more banks are also offering loans to private individuals online. It is convenient and quick and only takes a few minutes. You often read statements like: “With a few mouse clicks to the loan!” And the like. In practice, however, it is not quite as simple as the banks need certain documents to check the loan application.

What documents are needed?

What documents are needed?

In the first place is proof of the identity of the applicant. The easiest way to do this is with a copy of the front and back of the German identity card. Another way of proof of identity is a copy of your passport (the page with the photo and personal details). Since the passport does not contain a home address, it may be necessary to enclose an official registration certificate from the registration office with the documents.

The certificate must not be older than 6 months to meet the requirements of the bank. Foreigners with permanent residence in Germany must send a copy of the foreign passport (also the page with a photo and personal details) and a copy of both sides of their residence permit. A current registration certificate may also be required.

The bank still needs the applicant’s proof of income. This is either the wage or salary statement or the pension notification. In most cases, proof of income from the past two or three months is required. These documents must be sent in in the original, copies are not accepted.

Some banks also require the bank statements of the account to which the income is usually transferred. The latest account statement is usually sufficient, but sometimes requests for the last two or three months are also requested.

What should applicants pay attention to?

What should applicants pay attention to?

The fastest way to process the loan application is when all documents are ready and complete. To avoid delays, read the instructions given by the bank carefully and adhere to them. Manipulation of payslips or bank statements is strongly discouraged, as these are official documents. Unauthorized changes to it are not permitted.

If the bank notices such changes, the loan application is rejected in any case. On the other hand, it is legal to choose a month or a period in which you earn more than usual when you apply, for example, because the month has more working days or because you work overtime.

If you value getting your documents back, it is advisable to enclose a sufficiently franked and self-addressed envelope. Since the necessary documents are sent by post, it takes several days to process the loan application, especially if there is a weekend or a public holiday in between.

If a loan is approved on the Internet immediately after completing the form, this commitment is not binding, but only provisional until all the requested documents have been checked. Because the identity of the applicant also has to be checked, it takes a relatively long time for the loan amount to be transferred to the specified account.

More flexible consumer loans

The cheapest consumer loans are around 5%, although, in order to benefit from this interest, the entities demand to be linked by hiring numerous other products, such as cards, insurance, and domiciliary payroll and several receipts

There are many families who currently decide to go on a trip or make reforms in their home by hiring a personal loan … The high rate of consumption of Spanish households, which has been growing at rates of 4% in the last five years, makes many people have opted for the philosophy of living at full speed, many times to the limit of their possibilities.

More flexible consumer loans

More flexible consumer loans

In this scenario, consumer finance acquires a very important role, which has grown at rates above two digits in the last three years. In 2006 alone, financial institutions granted loans worth 81,000 million dollars, which is 14.7% more than in the previous year.

Now that the mortgage business is starting to slow down, there are many entities that have announced that they will pay more attention to their consumer loan business.

In general, although interest rates have risen, banks and savings banks are making it easier to grant this type of personal credit. Extending financing periods or introducing grace periods are some of the facilities that include many of the new loans.

A product that interests

A product that interests

The consumer credit market (credits that allow the financing of consumer goods such as vehicles, travel, household appliances …) has been driven in recent years by an environment of the favorable economic situation, low-interest rates and the great dynamism of spending in household consumption.

Currently, although interest rates have risen and, in general, loans are somewhat more expensive, the slowdown in the mortgage business is moving many financial institutions to improve the conditions of their consumer finance products. Philippe Fevre, responsible for assets of Fine Bank Spain, says that the personal loan segment is today one of the most interesting for entities.

“More and more people finance their travels, their reforms at home, technological whims such as plasma televisions … It is an attitude that is gaining ground in Spain,” he says. Salvador Maldonado, director of external relations and studies of Agree Bank, believes, in addition, that consumption will remain ‘strong’, so he hopes that this business will continue to offer interesting results also in 2007. “We estimate that consumer credit will grow at rates between 14% and 14.5% in 2007, “adds Maldonado.

The conditions


With this scenario of rate hikes, high consumption, and economic slowdown, entities are striving to introduce peculiarities to their consumer loans. They want to include exclusive advantages that make their products flexible so that they meet the needs of customers.

A report by the Bank of Spain states that at least ten entities relaxed in the fourth quarter of 2006 the conditions applied to their loans to household consumption, while, on the contrary, they tightened the criteria for approval of new mortgages.

From the consultant Good Finance they assure that the moderation of the private consumption and the rise of the interest rates configure a scenario in the short and medium-term in which a slight deceleration of the growth rate of the new investment in consumer credit is foreseeable.

“However, the growing need for liquidity on the part of families will compensate for the impact of the rise in interest rates in the demand for consumer loans, causing greater pressure on entities to make the repayment terms of the loans more flexible,” add.