How to apply for a Loan: Requirements and Necessary DocumentsOn December 1, 2019 by Rosalia Hampton
If you are thinking about a loan for the purchase of a new car or a trip, or to face a situation where you need more liquidity, it is good to know what the requirements and documents are necessary to be able to apply for a loan.
Requirements for applying for a loan
The requirements for obtaining a loan may vary according to the type of loan requested. Generally, for all loans the prerequisites are:
- an age between 18 and 75 years (exceptions may be assessed during the preliminary investigation);
- demonstrable income;
- residence in Italian territory;
- be a bank account holder.
Each institution then evaluates the credit application based on its own policies: it analyzes the documents presented, the public databases, the level of indebtedness, the delays in repaying the installments or any missed payments, the relationship between income (monthly income) and debt .
Good creditworthiness is therefore a key requirement for obtaining financing.
Lenders may also request the guarantee of a third person who agrees to pay in the event of consumer default. In this case also this third person – the guarantor – must present the documentation on his “repayment capacity”.
The documents needed to apply for a loan
The documents to be submitted for a loan application depend on the company to which it is requested. Normally we require:
- the identity card;
- the tax code;
- a certificate of the income received: paycheck or CUD if employed, tax return if self-employed or self-employed, pension slip or INPS certification if retired;
- a user certifying residence;
- In case of non-Italian nationality, documentation on the regularity of presence in Italy may be required.
How to choose a loan?
We distrust those who promise easy financing to anyone and we always check, in addition to the monthly installment, the real cost of the loan: preliminary costs (for the analysis of the conditions), TAN (Nominal Annual Rate), APR (Global Effective Annual Rate) and any insurance costs (optional or compulsory). In the comparison of several offers, the APR may represent a decisive element (with the same amount and duration) and should decrease as the duration of the loan increases.
To face any request for financing with the necessary awareness (avoiding the risk of over-indebtedness) and to better manage our credit situation, we can turn to tools such as Mettinconto or Mettinconto 365.