When the borrower applies to the bank in order to obtain a loan, the employee talks about the conditions and procedure for providing it, and also gives a list of necessary documents for processing.
Fundamental documents for obtaining a loan
These include papers 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 returnable documents are made. The employee also compiles a list of accepted papers, which is recorded either on a separate sheet or on the back of the application. Documents for a loan provided by the borrower are accepted, transferred, recorded and stored in accordance with the rules in force in the bank. After all the papers are collected and executed, they are sent for initial verification.
Initial check of the borrower
The time for considering a loan depends on its type and amount, but it should not exceed eighteen days. The countdown starts from the date of submission of documents. When it comes to a loan for urgent needs, twelve days are allotted for a decision.
Documents for a loan provided by the borrower are checked by a bank employee. This is done in order to control the information specified in the questionnaire. By checking the submitted documents, the employee finds out the credit history of the borrower and the guarantor (s), the amount of debt on previously received loans (if any) or guarantees provided using the database of individuals. If necessary, he addresses requests to other banks, organizations and enterprises providing credit.
It will be correct to include in the number of guarantors those individuals who are related by family ties: adult children, parents, adoptive parents, spouses and trustees. The level of their income does not matter. Such a rule applies only if they are not the only guarantors. After verification, the solvency of the borrower and the maximum possible loan amount are determined.
After that, the credit department sends the collected package of papers to the legal department. Based on the results of the analysis and verification of documents for a loan, the security department draws up a written opinion, which is transmitted back to the lending department.
The credit department may involve an independent appraiser or employee of a subsidiary in the work (in the case of pledging vehicles, real estate or other property, in order to determine the value of the property). After the assessment, the specialist forms an expert opinion, which is provided to the credit department. Securities may also be used as collateral, the acceptance of which is determined by bank specialists. They also draw up an expert opinion, which is transmitted to the credit department. All documents are checked in the most careful way, because it is from them that the borrower's creditworthiness depends.
Borrower credit rating
Assessing this factor, all mandatory payments indicated in the questionnaire and certificate are deducted from the income of the individual. These include alimony, contributions, income tax, interest on other loans and repayment of debts on them, compensation for damage, etc. To assess the creditworthiness of the borrower and guarantor, the bank employee not only examines the questionnaire, but also checks the certificates from the place of work or issued by the state social protection authorities on the size of deductions and income. When preparing documents for a loan of any kind, these securities are mandatory.
The final stage
Having completed the audit, 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 makes the final decision on the refusal or issuance. In case of non-provision of funds, the reason shall be indicated in the client’s report or application.
After the message on the approval of the loan, the client must, having with him the documents for obtaining a loan, come to the bank.