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.

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