What documents do I need for a loan?

The German Banking Act stipulates that banks must obtain an overview of the economic situation of borrowers when granting loans. A credit check is therefore essential, even for mini loans. In return, the exact documents that are needed to apply for a loan are not stipulated.

Documents for credit depending on the type of credit

Documents for credit depending on the type of credit

However, there are some documents that have become the standard when applying for credit. It is also possible to make further distinctions regarding the group of people and the type of loan. Depending on the situation, different documents are required. An employee must provide different evidence than a pensioner. With a car loan you also have to submit different documents than with a simple consumer loan.

Basically, banks have to assess your financial situation when lending. For this reason, bank statements of borrowers are requested in most cases, regardless of the group of people and the type of loan. A copy of a valid ID document, such as an identity card, is also one of the comprehensive documents that are requested.

You need these loan documents:

You need these loan documents:

Depending on the group of people a private borrower belongs to, it makes a difference which documents are requested when applying for a loan. In addition to the fully completed loan application, it depends on your employment relationship which evidence the banks want you to see.

Loan documents as employees

This group of people is generally the easiest to apply for a loan if the financial circumstances are appropriate. Basically, you need proof of salary from the last 2-5 months. In the case of smaller loans, it is sometimes sufficient to provide such evidence using bank statements. Some banks also request a copy of the employment contract in order to be certain about your employment.

Loan documents as pensioners

For some banks, pensioners and pensioners are already at risk. Therefore, there is often an age limit for loan applications. The most important documents for this group of people include the latest pension notices. This provides proof of a regular income, similar to that of employees.

Loan documents as Self-employed & freelancers

Since the self-employed and freelancers have no regular income, such as an employee, there is a significantly higher risk of default for banks in this group of people. Accordingly, significantly more documents have to be submitted in order to substantiate one’s own solvency. Because of this increased risk, the self-employed and freelancers often only get a loan at a higher interest rate.

Depending on the bank’s requirements, you must submit the following documents if you belong to this group of people and want to get a loan:

  • Business evaluation (BWA)
  • Earnings surplus calculation (USD)
  • Profit and loss account
  • Income tax notices
  • Advance sales tax returns

Differences by type of loan

Differences by type of loan

In addition to the different groups of people, it also depends on the type of loan, which documents have to be submitted to the bank. For general loans without a special purpose, the following rule of thumb applies: the higher the loan, the more documents have to be submitted. If you apply for a mini or small loan with a very small amount, an analysis of your most recent bank statements is sufficient. In contrast, loans with significantly higher amounts require significantly more collateral.

Depending on the purpose of the loan, the banks may request additional documents:

  • Car loan: registration certificate part 2 as well as the purchase contract of the vehicle and the vehicle documents, each in copy.
  • Real estate loan: Corresponding documents that you receive from the seller about the property, e.g. floor plan, land register entry, calculation of living space, building description and a list of costs with regard to additional costs, taxes, cost estimates etc. Furthermore, existing reports can be submitted and, in the case of a condominium, a Declaration of division and of course the purchase contract.
  • Debt rescheduling: copy of the existing loan agreement, a power of attorney to redeem the old loan and the current account statement of the repayment account so that the remaining debt can be determined.

What fees does the non-bank loan installment consist of?

When looking for the best loan offer for yourself, you should first pay attention to its total cost. Attractive terms of cooperation and a minimum of formalities should not be the main selection criterion, although it cannot be denied that these issues are equally important. It is important, however, how much the loan costs, because it defines the amount of subsequent installments. What does it cost?

What does the loan installment contain?

What does the loan installment contain?

When browsing the offers of individual lenders, you may notice that they differ in the amount of interest. This is not the only parameter that affects the total cost, as all fees are included in the APRC indicator. It is the Actual Annual Interest Rate that affects how much you will have to pay the lender for the money you borrow. The APRC includes:

  • commissions,

  • nominal interest rate,

  • preparatory patches,

  • loan insurance

  • other service costs.

As it turns out, the amount of the loan you receive is not synonymous with how much you will be required to pay back. It is worth remembering, however, that in the case of payday loans for new customers, you can take advantage of a free, first loan. If you return it within the set deadline, you will not have to pay any fees. In the case of an installment loan, you have to face additional costs.

How to calculate the cost of the loan?

How to calculate the cost of the loan?

Loan companies provide their clients with tools that can be used to calculate installments conveniently. All you need to do is specify the loan amount and repayment period to view the monthly installment amount. In addition, special calculators are available on the Internet that, after entering the required values, will automatically calculate how much the loan costs.

What fees should I pay attention to?

After the introduction of the anti-usury law, loan companies no longer have so much freedom in determining the cost of a loan. The nominal interest rate may not exceed four times the Good Finance loan rate, but you cannot forget about other fees. When choosing a loan, pay attention to such parameters as commissions or preparation fee, because they are largely responsible for the installment amount. You should also be guided by the APRC indicator, which includes all the costs of a given loan.

Ranking of loans with the lowest installment

The market for non-bank products is very diverse in terms of fees and terms of cooperation. Instead of analyzing the cost of each offer separately, it’s a good idea to use the loan ranking. It contains a list of the most attractive offers in a given month, and also allows you to compare the parameters of a selected loan.

Information on fees is added to each company’s proposal, which is added to the basic loan amount and affects the repayment schedule. Paying attention to such elements, you will find the best financing option to the best of your abilities and you will not be exposed to high costs of the loan.

Borrow 100 dollars – mini loan with immediate approval and quick payment

 

100 USD mini loan

100 USD mini loan

A financial bottleneck can occur at any time. Perhaps the washing machine breaks, the utility bill may be higher than expected, or you may have sweated that annual insurance fees have to be paid.

In such a situation, a small amount of only 100 USD is usually missing. You can easily borrow 100 USD in the form of a mini loan. Small mini loans are also granted with a Credit bureau entry. Here you can find out when a 100 dollar loan can be useful and what you should consider with mini loans.

Which providers can I borrow 100 USD from?

Which providers can I borrow 100 USD from?

100 USD mini loans are available at very favorable conditions and also for Credit bureau entries

There are several providers of 100 USD mini loans. The best-known providers include Nice bank, Good bank and Best bank. All three providers have in common that you can take out a USD 100 loan with a very short term there quickly and easily. Mini loans are usually repaid at a single rate. Most providers also offer the option to repay the loan in multiple installments. However, this option is usually chargeable and is sometimes not even offered for small sums.

At Nice bank, an effective annual interest rate of 13.9 percent is taken into account for a 100 dollar loan. The annual percentage rate for Good bank is 10.36 percent and for Best bank 7.95 percent. You should keep in mind that this is the effective annual interest rate. With a term of 30 days, for example, with Nice bank you only pay USD 1.16 interest. The total cost of the loan is therefore 101.16 USD. ( As of November 2018 )

Who can take out a 100 dollar loan?

Who can take out a 100 dollar loan?

In order to take out a 100 USD mini loan, you must be of legal age and have a German bank account. A main residence in Germany is also a basic requirement, although Good bank is also sufficient a residence in Europe. In general, it also applies that you must not be over-indebted.

A negative Credit bureau score alone does not mean that you cannot get a mini loan over 100 USD. The providers usually also check for themselves whether they can classify you as creditworthy. Nice bank and Best bank, for example, only grant loans if you can prove a minimum income of 500 or 700 USD per month.

What is a 100 dollar loan needed for?

Everyone can quickly get into a situation in which it would be nice to be able to fall back on an additional 100 USD. A few examples have already been mentioned at the beginning. Even with good financial planning, a bottleneck can arise spontaneously. Perhaps you are already saving some money on the annual utility bill. If the property manager should be overzealous and the invoice arrives a month earlier than expected, you can still pay it in time thanks to the mini loan.

The same applies to other annual bills, such as car insurance. Such mini loans can also come in handy. Assume that your washing machine breaks and the repair is not worth it. Then you need a new device quickly. Perhaps you have already considered a model, but unfortunately it is 100 USD more expensive than you have this month. With a $ 100 mini credit, you can still buy your dream machine now and don’t have to worry about having bought a worse machine, simply because you had to.

How quickly is a 100 dollar loan paid out?

How quickly is a 100 dollar loan paid out?

The waiting time is different for the individual providers. In general, all providers offer their services free of charge. You only pay back the loan amount plus the agreed interest. This is extremely useful when you see the financial bottleneck coming. If, for example, you spontaneously think that the insurance bill will come and not have to be paid this month and not next month, you can choose the cheapest mini loan provider and get the money paid out in 3 – 15 working days.

However, if things have to be done quickly because you may come back from vacation and find an invoice in the mailbox whose payment deadline has almost expired, you can drastically speed up the process for a fee. With such an express option, the money is usually credited to you on weekdays within 24 hours. Some providers also promise to pay the money the same day if all the required documents are available by a certain time.