Preparing documents for a loan

When the borrower appeals to the bank to obtain a loan, the employee tells about the terms and procedure for its provision, as well as provides a list of necessary documents for clearance.

Fundamental documents for credit registration

These include paper on the amount of income, passport, application, as well as some additional documents for certain types of loans.

The application of the borrower is registered by the employee of the bank, which deals with loans, in the accounting journal of applications. It shows the registration number and date. In addition, copies of all documents to be returned are made. The employee also makes a list of accepted securities, which is fixed either on a separate sheet, or on the back of the application. Documents for the loan, provided by the borrower, are accepted, transferred, accounted for and stored in accordance with the rules in force in the bank. After all the papers are collected and decorated, they are sent for initial verification.

Initial check of the borrower

The time for consideration of the issue of granting a loan depends on its type and amount, but it should not exceed eighteen days. The countdown starts from the date of submission of the documents. If it is a loan for urgent needs, the decision is taken twelve days.

Documents for the loan, provided by the borrower, are checked by a bank employee. This is done to control the information indicated in the questionnaire. By checking the submitted documents, the employee ascertains the credit history of the borrower and the guarantor (guarantors), the amount of debts on previously received loans (if any) or provided guarantees, using the database on individuals. If necessary, he addresses inquiries to other banks, organizations and enterprises that provided credit.

It will be right to include in the number of guarantors those individuals, who are related to each other by related ties: adults, parents, adoptive parents, spouses and trustees. The level of their income does not matter. This rule applies only if they are not the only guarantors. After verification, the borrower's solvency and maximum possible loan amount are determined.

After the credit department sends the collected package of securities to the legal department. Based on the results of analysis and verification of documents for a loan, the security department draws up a written opinion, which is sent back to the lending department.

The credit department may involve an independent appraiser or an employee of a subsidiary enterprise (in the event that vehicles, real estate or other property are pledged for the purpose of determining the value of the property). After evaluation, the expert forms an expert opinion, which is provided to the credit department. As a pledge, securities may be used, the ability of reception is determined by the bank's specialists. They also constitute an expert opinion, which is transferred to the credit department. All documents are checked in the most careful way, after all, the creditworthiness of the borrower depends on them.

The credit rating of the borrower

Estimating this factor, from the income of an individual, you subtract all the mandatory payments indicated in the questionnaire and the certificate. These include alimony, contributions, income tax, payment of interest on other loans and repayment of debts on them, compensation for damages, etc. To assess the creditworthiness of the borrower and the guarantor, the bank employee not only studies the questionnaires, but also checks references from the workplace or issued by state social protection agencies about the amount of deductions and income. Preparing documents for a loan of any kind, these securities are mandatory.

The final stage

Having completed the check, the bank employee dealing with this issue forms a package of papers with his decision, which is endorsed by the head of the unit. These documents for the loan are sent to the management of the department, which takes the final decision on refusal or extradition. In the case of no provision of funds in the conclusion or in the client's application, the reason is prescribed.

After the loan approval message, the client must, when carrying documents for obtaining a loan, appear in the bank.