You are finishing studies, starting an independent life and want to buy an apartment. Where to get the money A thought immediately comes to mind – from the bank! So you go there, but your creditworthiness will largely determine whether or not you will be granted a loan.

What exactly is this ability?

This is nothing more than checking whether the borrower has the option of paying off the loan with interest that he plans to take, within the time limit provided for in the contract.

To assess its client’s creditworthiness, the bank performs an analysis of that ability. Whether the borrower receives a loan will depend on the result of this ‘study’.

Generally, each bank has a different method of checking whether a customer can cope with timely repayment. Thus, the creditworthiness of the borrower may vary in other banks. Where to get the money A thought immediately comes to mind – from the bank! So you go there, but your creditworthiness will largely determine whether or not you will be granted a loan.

The analysis of creditworthiness

bank

Consists in the bank comparing revenues with expenses on a monthly basis. The purpose of this comparison is to be able to determine whether, during the period in which the borrower was analyzed, there was a cash surplus that could potentially be used to pay back even the first installment of the loan.

The bank will probably be tempted to check whether the borrower is married, ask about age, education, number of years worked. 

It should also be borne in mind that for a financial institution that grants a loan, it is also important whether the potential borrower has a legal source of income, e.g. an employment contract or own business.

Leave a Reply

Your email address will not be published. Required fields are marked *