A credit application involves requesting a loan.
A credit application is the procedure that consists of requesting a loan from a financial institution . The application itself is made up of the documents requested by the bank to carry out the credit evaluation: if the person meets the requirements demanded by the entity, the granting of the loan will be approved.
It should be noted that the action of asking or wanting something is known as a request (from the Latin sollicitūdo ). A request, therefore, is an errand or request. The notion of credit , on the other hand, refers to an amount of money that is obtained as a loan . A bank that provides a loan of 5,000 pesos to a person is lending them that amount. The subject must return the money within a certain period of time plus the interest that represents the bank's profit. Thus, to receive a loan of 5,000 pesos, the individual will have to return, for example, 6,000 pesos (the amount received as a loan plus interest).
How to make a credit application
Although it varies in each bank, the credit application usually includes a form to be completed by the applicant, proof of stable income (such as a salary receipt) and a photocopy of their National Identity Document (DNI) .
To buy a home, start a business or even to purchase a car, many people make the decision to apply for a loan from their financial institution.
In addition to these documents, it is common for a series of requirements to be established not only to be requested but also for it to be granted. Among them is that the person who carries it out is of legal age and that, in the case of not having income, he or she must present sufficient collateral, such as a property.
The credit application can be approved or rejected by the bank.
Request rejection
It is important to note that submitting a credit application does not obligate the bank to grant the loan. It is precisely a request, a request that the banking client makes to the entity in order to access credit. The bank, therefore, has the power to reject the application.
In times of economic crisis, the loans granted by banks are usually reduced. However, in the face of this, there is also an increase in companies specializing in credit that even operate only online. Those usually offer personal loans that are amortized by paying a fee as well as the corresponding interest. They also provide various modalities such as, for example, renewable ones that can be requested more than once.