Installment loans are easily understandable financial products – but applying can be a bit of a challenge. What does the bank want to know about your financial situation? How does the loan application process and how long does it take to receive the money? And last but not least: How do the new, paperless application procedures with video ID and digital signature work? We have summarized everything you need to know about the installment loan application for you.
Installment loan application: This is how the application is made
Every installment loan application begins with an application form with which you apply for the loan. Here you must first enter personal data – name, address, previous addresses and contact details. Banks also ask about your living situation, the number of people living in your household and your income.
In addition to the amount, the type of income calculated is also important. For example, you must have an open-ended employment relationship for lending that has existed for at least six months. Information about fixed expenses is also requested. Maintenance obligations, ongoing credit installments and expenses for motor vehicles are particularly relevant here. For general expenses such as B. Telecommunications, energy, weekly purchases etc. banks set a flat rate in their household bills. You must accept the Credit bureau clause in the installment loan application.
What happens next depends on the bank. Typically, your household bill data is calculated in real time and a Credit bureau request is made. This should be coded as a condition request and should not damage your credit rating. Immediately afterwards, you will receive a legally non-binding immediate confirmation if the Credit bureau data is good and your stated income is sufficient. In this case, the loan contract will be sent to you or made directly accessible on the screen.
New procedures will simplify loan applications
You will then have to confirm your identity and provide the information on your income provided in the application. The identity is usually checked using the Postident procedure. To do this, print out a coupon together with the loan agreement and present it with an official photo ID to a branch of Deutsche Post. Send the loan agreement to the bank along with the requested proof of income.
Proof of income is provided by employees, pensioners and civil servants e.g. B. provided by pay slips, pension notices and earnings notices. Some banks only ask for a pay slip, others half a dozen. A copy of the employment contract may be required in individual cases. The self-employed must submit a business evaluation and tax assessments certified by the tax advisor. Many banks require bank statements in addition to proof of income – return debits, tolerated overdrafts and payments to collection agencies can prevent a loan.
Recently, new procedures have been used for the installment loan application. More and more banks are putting z. B. on Videoident instead of Postident and enable a digital signature. Instead of proof of income and bank statements, digital account checks can be used, in which the essential features are read out by an algorithm. These procedures will become more important in the future.
Conclusion: Credit application 2.0 is the future
A loan application consists of an application form with self-disclosure, a Credit bureau check, the legitimacy check, the signature under the loan contract and evidence of income and financial situation. Filling out the application form and compiling proof of income is mostly unproblematic, especially for employees. In contrast, the Postident procedure and the sending of the signed credit contract cost time. New procedures such as video ident, digital signature and account check can speed up the installment loan application and will therefore become more important.