Applying for a payday loan is always a complicated and well-controlled process, as it is not important to any bank to whom and under what circumstances it provides the loan amount. In order to make sure that the credit institution is credible, financial institutions make a credit assessment.
Based on a rating of the debtor and a valuation of the collateral
Banks will determine the amount of the loan type selected by the customer during the credit assessment, based on a rating of the debtor and a valuation of the collateral. Criteria include customer data, required documents, and compliance with individual financial institution criteria – income status / relationship, property value, etc. Credit assessment and decision-making times also depend on the amount of credit.
Steps determining the time to apply for a payday loan
1. Information and prior credit assessment
The first step in getting a loan is orientation. A lot of time can be saved with careful information. With fixed income, you can already see how much money you have to pay off your monthly loan , so you can easily play around with the amount, maturity, and type of loan available with our online loan calculators .
In addition, each bank has the option of conducting a preliminary credit assessment , which will serve as a guideline, providing an overview of our situation and opportunities.
It is worth looking around: not only the offers of our own financial institution, but also the alternatives offered by other banks, as each of them regulates borrowing according to different specific conditions.
2. Obtaining the documents required for the loan
One of the most demanding aspects of applying for a loan is to collect the bank’s required documents for the loan . Depending on the type of loan service you want to use, such as a free payday loan or mortgage, and which bank you wish to use, the list of documents requested may vary.
Depending on this, the following certifications should be prepared in advance , even if you are not sure which type of loan to choose:
- employer’s certificate,
- as an employee, a 3-month employer’s certificate at one workplace,
- retirement income voucher as a retiree,
- private entrepreneur and business owner tax certificate (this is a personal income tax return for the previous tax year – if you are not a business for one year, a certificate of fulfillment of 3 months’ social security contribution)
- bank account statements for at least half a year,
- certificate of sale in case of home purchase,
- and ownership of the property to be offered as collateral.
At best, it takes at least a week to collect the documents.
3. Credit assessment
Once the necessary documents have been submitted, the most time-consuming part of the borrowing takes place, which can take at least three weeks . Of course, this does not mean that the duration cannot be changed, but administration under 21 days should be considered. This is when the valuation, that is, the credit assessment, follows when the banks examine it
- the value / quality / geographical location of the properties offered as collateral, etc.,
- and the documents submitted for client certification ( proof of income, credit application form).
The creditworthiness assessment process may be lengthened if the credit institution needs additional documentation to make a decision.
4. Contracting and disbursement
If all the conditions are met in the course of the credit assessment, and no foreclosure factor prevents you from applying for the loan, the bank will issue a draft contract. Lending can begin within 2-3 days of the agreement being reviewed, but only if the own funds have been paid in and proof of this has been provided.
Credit assessment time for payday loans and home loans
There are many reasons and purposes for applying for a loan: servicing a car that is suddenly broken, replacing obsolete electronics, and most often buying a home or home. In such cases, a larger amount is needed in a relatively short period of time, so it does not matter how long it takes to get additional funds.
Different loans – payday loans, home loans – have different lead times, since different conditions have to be met . For payday loans, we can expect a faster procedure , and you can get the amount you want within 2-3 days, up to a week after you apply for a loan. At best, it takes two weeks to obtain a credit assessment and a contract to take out a home loan .
In the worst case scenario, a lead time of 1-2 months is expected, the most common reasons being missing signatures, blank headings or incomplete documents.
The speed of credit assessment time
The loan application and time management with regard definitely worth paying attention to three things, which is the first stage of the preliminary inquiry. If you turn to a bank in a well-prepared and conscious manner, gathering the necessary and necessary documents beforehand, you can save a week in the process. In order to reach the minimum lead time, it is even necessary to check the exclusion factors in advance and to fill in the documents accurately .