What are bank loans?

In other words, we are dealing with an interaction between the bank, which plays the role of lender, and the person who needs the money, the borrower. Of course, to lend that much money, a range of interest rates must apply. That is, some "extra earnings" for which it is profitable for these banks to lend that money.

Although in most cases bank loans are requested by individuals, the truth is that there are many other people who focus on companies because they can also request them.

In fact, the ultimate purpose of a loan is to provide a certain amount of money to a person or company. So that it can buy or pay for a particular service or purchase. However, the truth is that there can be several reasons that compel a borrower to apply for these bank loans.

What are the most important elements of bank loans?

While applying for a bank loan, you should consider these basic elements that you should understand well. ie:

· Capital : It will be the amount requested from the bank. Be careful, because this may not be what they give you in the end, as later the bank may give access, denial or some other recommendation.

· Interest : It is the cost that the borrower has to pay to lend the capital. This is the extra amount that is calculated by the banks in every loan.

· Tenure : This is a period of time that the person has to repay all the requested capital along with interest.

Types of Loans

Many times, when banks think of loans, one type always comes to mind, and yet there are several that can be applied for. To be clear, these would be:

· Personal loans . They are those that fulfill a specific need of a person at a given time. In this case, they can be:

o of consumption. Also called credit. They are used to buy something that is durable, such as a car.

o fast. They are the ones who are quick to accept, although in many cases their interest can be overwhelming.

o of study. As the name suggests, these are the ones used to cover the tuition and expenses incurred in studies.

· mortgage loans . The purpose of which is to have money for home, business, place etc. They transfer large amounts of capital and often require collateral.

How to Apply for Bank Loans

Have you decided to apply for a bank loan? So the next thing you need to do is where to go to get it.

There are many types of lenders you can go to in Spain, but if we talk about bank loans, the main ones are:

· banks . One explanation is that you can apply for a loan in both Spanish banks and foreign banks as long as they are represented in Spain.

· Saving and crediting cooperatives .

In addition to these places, loans can also be obtained through private equity companies (which act as lenders) or credit platforms between supermarkets, stores, credit card companies and individuals.

As a general rule, the first place you will inform yourself will be your own bank. And if he rejects you, or the conditions are not favorable to you, you will go to other banks or savings banks.

What requirements must you meet?

Do you want to know what they are? Requirements What will banks ask you when you want a bank loan? We start from the premise that each bank may have different requirements. So if you get rejected at one place, you can always apply elsewhere.

However, in general, there are some important requirements that must be taken care of and they are as follows:

· is over 18 years old . That means being of legal age.

· Have a valid ID. . This is important, although if we take into account that DNI can be obtained from the age of 14, the majority will fulfill this requirement.

· is the solubility . Here we must clarify. On the one hand, you have to guarantee a regular income, that is, show that you will be able to pay back the money they are going to lend you. That doesn't mean you have to have everything, but enough to take care of the monthly installments you'll have to pay.

· offer a guarantee . This is the so-called guarantee of payment or endorsement. Some bank loans do not require this, especially when the loan amount is small, but in other cases they do.

· Do not belong to the list of criminals and are not deficient. . If you are on this list or have defaulted, they will not give you a loan, although in these cases you can go to private companies as some do not take this requirement into account.

Apart from fulfilling these requirements, you also need to have a series of documents that will speed up the procedure a lot. In this sense we speak:

· DNI or NIF .

· Bank Account (Number) It is important to know where they have to enter the loan amount.

· Latest salary or employment contract (to make sure you can return it).

· Income statement .

· Properties in your name .

Apart from these documents, the bank can always request more before making a final decision.

Now that you know everything about bank loans, it will be easier for you to identify the terms, requirements and everything you need to know about them. Doubt? Consult us without commitment.