General purpose loan is a type of loan that is used to meet short term and low amount cash needs with its general definition. Today, consumer loans can be used much more easily and practically with the developing technology. It is possible to make loan applications through internet banking.
Required Conditions for Using Consumer Loans
As with all types of loans, certain conditions are required for general purpose loans. Of course, every bank also has its own policy. But; first condition; the individual who will use the loan is 18 years old and above. Because no individual under the age of 18 can use a loan from any bank. Generally, banks do not give loans to individuals under 20 years of age by going above this limit.
The other condition about age is that people who are 70 years old and over are not given credit. The reason for this is that the risk of death increases for people of this age and therefore banks do not want to take this risk. Of course, this requirement does not apply to every bank.
Loan Application and Personal Loan
At the same time, there is no legislation regarding the age of 70 and over. Another important condition for consumer loan; sufficient credit score is provided. Credit score; gives information about the financial background of the individual. In other words, the credit rating is of great importance for individuals’ credit use. Banks attach great importance to the credit score of the individual, ie the credit score, in applications for consumer loans.
At this point; the individual must know the credit score and learn the details about this subject. Because banks provide faster and easier loans to their customers with high credit ratings, they suspect customers with low credit ratings. Most of the time, the loan application can be rejected due to the low credit rating. If the credit score is at risky levels, it will be useful to obtain a credit card. Of course, it is necessary to pay the acquired credit card regularly. Thus, the credit rating will increase.
Regular income is also among the requirements for a loan application. At the same time, the income must be declared officially. Individuals with regular income are more likely to get positive results when they apply for a loan. It is required to have SSK registration or Tax plate. (For the last 3 months) It should not be pursued due to a debt taken from another bank. In some special cases and in some banks, surety is required.
Consumer Loan Payment Plans
Monthly payment plans are drawn up in connection with the income of the applicant. Monthly loan payments are not more than half of the individual’s income. For example; If the individual does not meet the monthly payment of the amount of the monthly income, the banks prefer to decrease the loan amount or extend the maturity in this case.
Documents Required to Apply
- Identity Card (Identity Card) or Passport
- Address (residence) Document
- Water, natural gas, electricity bill for the last period (The invoices in question must be issued on behalf of the person applying for the loan or on behalf of one of the family members with the same surname).
- If no such invoice is available, the residence document for the last month
- Income Certificate (Salary Payroll)
- SGK service breakdown, SSI Premium Payment Document, salary payroll for last month or workplace certified document showing the net salary amount
- Public Employment Document for Public Employees (Current), Certificate of income
- Retirement promotion card and pension allocation document for retirees. Alternatively, a bank passbook for the pension can be issued.
- For the Freelancers and Company Partners, the last year’s tax plate, the last year’s balance sheet and income statement / business account summary, the trade registry newspaper / chamber registration document
- Passbook showing interest income for Securities
How Much Income Do I Need to Use?
As mentioned, it is obligatory to have regular income and document this income when applying for credit. In order to exemplify the income level situation, if a monthly loan of 1,000 USD is desired, at least 2,000 USD of income must be declared to the bank in question.
Therefore; In the light of this example, the income of the individual should be at least 2 times higher than the monthly loan installments. After these calculations are made, how much consumer loan can be used from the bank is determined. Before applying for a loan, an individual can make his own calculation and apply at the limit.