What Aspects Should be Taken Into Account when Requesting a Bank Loan?

Regardless of the reason why you want to apply for a loan, the truth is that banks are quite demanding when granting a loan. To access this type of product it is important to comply with a series of requirements. Let’s review in this guide what they are.

Renew the kitchen, buy a new car, go on vacation abroad or finance the university studies of the oldest of your children … Today, the reasons for applying for a bank loan are endless.

However, due to the current economic situation of the country and the high indebtedness rates faced by Spanish households, the conditions required by financial institutions to approve a loan are increasingly demanding. In order to qualify for financing that suits your needs, it is necessary to know certain aspects of bank loans.

Then, BillCare gives you the five points that you should not forget when requesting extra money from the bank.

1. Determine your current financial situation

1. Determine your current financial situation

Before asking for a bank loan, the first thing you should keep in mind is your current financial situation. Knowing your real financing needs, your monthly expenses and your tickets will allow you to obtain a clear and realistic economic scenario.

It is important that you analyze your job stability, your solvency, your ability to borrow and possible contingencies that may arise during the loan repayment period. You must also calculate in a very objective way the amount you want to request from the bank , since asking for more financing than you really need will only increase the value of the fees.

Finally, you must be sure that you will be able to pay the agreed amount. Do not forget that in case of default you will have to pay high interest.

2. Compare the market offers

2. Compare the market offers

When applying for a bank loan, one of the most important aspects is to compare the different offers proposed by the financial market. Do not forget the differences between loans and credits , because when you check the profitability you can take surprises.

The first thing is to find among the different entities one that gave you confidence and security. For that, you should compare what each bank offers, what are the advantages of each one and the characteristics of each product. If you need help, at BillCare we have developed a complete comparator with all the loan offers proposed by the different banks in Spain. Access it and find quickly, safely and free the one that suits you best.

3. Decide between fixed or variable interest

3. Decide between fixed or variable interest

Another point that you can not miss is the interest rate offered by the loan offer you want to subscribe. Choosing between a loan with a fixed interest rate is not the same as deciding on a variable interest financing.

Remember that if you opt for a loan with a fixed interest rate you will always pay the same amount. On the contrary, with a variable interest loan you will have to cancel the fee based on the variations of the indicator.

4. Pay attention to the amounts

4. Pay attention to the amounts

The amount is the amount of money you must pay monthly to repay the loan requested. It is important that you know that the value of the amount will depend on certain aspects such as the duration of the loan or the interest rate.

Remember that a low amount is not always synonymous with paying less. Generally, in these types of cases the interests are high and the client ends up paying more than he thought.

5. Do not forget the commissions

Many financial entities offer great promotions and benefits when hiring a bank loan. However, an interest-free loan , welcome gift or free quota usually involves high commission payments.

Among the most frequent commissions are the commissions for opening or for early cancellation of the debt. The fees make the loans quite expensive , so it is important that you look at them before signing the contract.