Very probably, there are many times when we have been in a bit of a hurry economically speaking. Whether out of pure necessity or pure whim, on more than one occasion we have wished we had something or quite a bit more money than we had.
The loan is a financial instrument much requested not only by individuals but also as loans for companies. Loans are usually granted by private lending companies such as Bugis Credit or banks to finance the purchase of a specific good or service: a car, some studies, a home renovation, among others.
It is very possible, also, that we have resorted to relatives or trusted friends to borrow a certain amount of money. However, this already involves putting someone in compromise, and that's not good for us most of the time.
It is precisely for this reason that loans from banks or loan companies were invented, through which we can obtain money easily, simply and quickly.
A loan is a financial operation in which one entity or person (the lender) delivers another (the borrower) a fixed amount of money at the beginning of the operation, on the condition that the borrower repays that amount along with the interest agreed upon in a given period. The amortization (repayment) of the loan is normally made through regular installments (monthly, quarterly, semi-annually ...) over that period. Therefore, the operation has a previously determined life. Interest is charged on the total amount of money borrowed.
Requirements to apply for a loan
When applying for a loan, the lender, either from a banking institution or a loan company, will review the user's characteristics in order to know his or her ability to repay, i.e., whether the applicant is able to repay the loan with his or her income, as well as whether his or her credit history speaks of people who have previously paid.The documents usually required by lenders are the following:
- Official identification: IFE or INE, valid passport or birth certificate.
- Proof of address.
- Proof of income (sometimes).
- Guarantees (car invoice, deeds to a property, etc.).
- Personal references.
- Letters from employers.
It is important to mention that the documentation will depend on the agreement reached with the lender. Generally, for small personal loans, the process is very fast and documentation is minimal.
If the entity decides to grant the transaction, it must deliver to the borrower a binding offer that will specify all the conditions applicable to it.
It is how both the client and the lender agree to comply with the characteristics of the loans. Almost always, it is using a contract, in which both signs, so that both parts have a legal document that proves that they agreed with the characteristics of the loan. Generally, when it comes to small loans, the contract is signed digitally, to speed up the process, and the client does not have to move to a branch. In these cases, the client must have a debit card so that the lender can deposit the money into the account.
