Are you applying for a loan and are you interested in how the bank determines the interest rate? The first thing the bank verifies is your creditworthiness. Do you know what it looks like next?
If you lend money to someone, you become a creditor. You always run the risk that your debtor will not be able to pay off your debts. To minimize this risk, the creditworthiness of the client is an important factor for you. This goes hand in hand with the interest rate, which serves as a reward for the risk taken.
As a rule, the simple rule applies: the higher the creditworthiness, the lower the interest rate. Creditworthiness is determined by means of scoring, which takes into account criteria such as:
- Marital status
- Number of children
The applicant’s income also plays an important role in determining creditworthiness. The lender is mainly interested in whether it is a permanent income.
Proof of permanent income varies according to the type of income:
- Employees – an income statement issued by the employer
- Entrepreneurs – tax return for the last accounting period, business license and tax receipt
- Pensioners (old-age and disability) – the original document of the amount of awarded pension, or. notification of its valorization
- Renters – Original document of the retirement rent
Applicant ‘s expenditure
On the opposite side of the revenue side, the applicant’s expenditure, in particular regular expenditure. As a claimant repays his obligations, creditors usually ascertain by consulting credit registers. Regular expenses are mostly:
- Savings allowances
After evaluation of incomes and expenditures, the so-called subsistence minimum is assessed. This is the amount that the applicant must remain after paying his regular monthly expenses and repaying the loan he is applying for. The amount of subsistence minimum is different for each. It depends on the number of dependent children and the number of persons living together. If the applicant has sufficient income, it is creditworthy.
What you need to apply for a loan with us
To apply for a Fine Bank loan you need:
- Identity card
- Second identity document – passport, driver’s license or birth certificate
- Confirmation of permanent income
If you are not a Czech citizen, take your passport or ID Card with you – valid for EU countries and Switzerland. In addition, do not forget to stay in the Czech Republic.
When applying for a loan of more than USD 500,000, you will need a co-applicant, who may be your partner, relative or a friend. If you are married, your spouse must be a co-applicant. If you are married, you will need the consent of your wife or your wife. husband.
We save your time – you don’t necessarily have to go to a branch
At Fine Bank we try to simplify everything for you, so you can also apply for the loan online via your internet banking or in the Smart Banka mobile application.