Processing of Online private loans

 

Today the Internet provides solutions for practically everything. And access to the financial world is no exception. Currently, there are a large number of private online loans that, as its name indicates, are managed online – with which the procedure is between investor and client – and are obtained in less than a week. It is an option designed for those who cannot access bank credit but at the same time need a quick solution to urgent expenses.

Throughout the Spanish territory and with private investors with no capital limit: this is done for the convenience of the client. A proposal much more accessible than usual because it has, in return, much fewer requirements. For what reasons would a person have refusals from normal financial houses to get private loans online ?

Who can apply for private loans online

Who can apply for private loans online

Those who are economically insolvent are generally not granted private loans. “Being insolvent is comparable to any of these situations: appearing on RAI or Asnef, not having a permanent job, not having a payroll, not having third-party guarantee, being unemployed or on a list of defaulters. ” Obviously, this has considerably restricted access to financing from external sources.

There is an option with more flexible conditions: private online loans. None of the situations just mentioned prevents having the money that is needed. Through these you can request between 6,000 and 150,000 USD, only having as collateral a debt-free real estate. You can even access up to 20% of the market price of the house. It may belong to the client or a friend who does the favor.

Requirements for private online credits

Requirements for private online credits

In addition to the deed, a DNI and a bank account number are required. With these documents, the online private credit contract is signed at a notary’s office in the city of the applicant. According to his possibilities, he can choose between different financing terms, ranging from 1 to 15 years. If from the second year of payment you are in difficulties, you will have an alternative to request amortization for the debt, with a cost of 0.25%. This charge and the APRs – which are not fixed, but are established according to the characteristics of the loan – are duly stipulated in the contract.

Accessible financing terms, an interesting amount of money, transparent conditions and immediacy in obtaining capital are the essential characteristics of private online loans. In sum, it is one of the alternatives available in the market to be managed wisely.

Credit and conditions to obtain it

You must meet several conditions to obtain a credit in Belgium. The lending organizations are quite picky and demanding on the establishment of files and sometimes your file is refused. This article summarizes the conditions for obtaining a credit.

Why am I being denied credit?

Why am I being denied credit?

It is common to say that bankers are careful people. They do not lend money to anyone and under any conditions. In fact, not all credit requests are accepted in Belgium. Thus, many individuals and businesses face refusals every day from their bank.

Here are the major risks that can play against you when applying for a loan:

  • Risk of over-indebtedness: the risk of over-indebtedness is one of the primary causes of loan refusal. Your banker must ensure that you do not go into debt and become insolvent in the coming years
  • Non-repayment: the banker can refuse you the credit if he feels that you are not able to repay the installments of it. This can result in a fragile file, a lack of guarantee, a project that does not hold water or a profile of borrower in whom he does not trust ( ex: a young person without stable job )
  • National Bank filing: if you are registered with the Best Bank and your debt is still being reimbursed, your credit will be refused. On the other hand, solutions exist if your filing is regularized, it all depends on the lending organization.
  • Mediation and collective debt settlement: in all cases, your credit request will be refused
  • Cascading credit: if you have taken too much credit in a short period, no need to apply for a new loan, you will be refused

Conditions for obtaining a credit

Conditions for obtaining a credit

Now that we have seen the conditions that can lead to a refusal, let’s see the minimum conditions for obtaining credit.

  • Be of legal age: you must be of legal age to apply for a loan
  • Have regular income: it is of course necessary to have regular income to apply for a loan. A fragile file will be refused given the risks run by the lending organization.
  • Having a current account in Belgium: this is a prerequisite for obtaining a credit. You must be domiciled in Belgium or Luxembourg. Direct debit (SEPA Mandate) is an additional guarantee requested by banks to avoid involuntary defaults. However, it is not necessary to have Belgian nationality to obtain a credit.
  • Good financial health: knowing how to manage your money is a prerequisite for applying for a loan. The lender must consult the Best Bank to make sure that you are not on the blacklist or prohibited banking. A borrower who regularly finds himself short will have a hard time gaining the confidence of his banker in order to obtain his credit.

Assess your debt capacity

Assess your debt capacity

Your debt ratio can go in some cases up to 60% depending on your income and depending on the lender. In other words, you must generate monthly income much higher than your monthly payments. This is one of the essential conditions for obtaining credit. A good debt ratio ensures that you can pay your monthly payments without problems, which will reassure your banker.

Don’t hesitate to compare the credit consolidation offers offered by our partners!