Contract loan credit what do you need to know?


The amount of remuneration is crucial

The amount of remuneration is crucial

The next important information about the applicant, which may determine the receipt of a consolidation or cash loan, is the amount of remuneration. The decision to grant funds in the amount indicated in the loan application may depend on this. If the analyst assesses the financial standing slightly lower than we expected, the bank may offer the client a loan under a mandate contract, in a smaller amount, adapted to the applicant’s financial capacity. The creditworthiness is also affected by the liabilities held, both their quantity and amount. Too many obligations – credit cards, loans and 0% installments (very popular when shopping online) can lead to the rejection of the application. In such a situation, the analyst may consider that there is too high a risk of failure to repay another loan. Of course, the type and form of employment are also verified. It must be admitted, however, that a person with a good credit history and regularly receiving remuneration for the mandate contract can receive a better offer than those working under a contract of employment, with numerous obligations and several “slippages” in repayments. Although the contract of employment gives the premises for greater stability of employment, persons exercising their profession under the mandate contract may also receive a loan. See http://www.ukremb-tm.org/2019/05/03/debt-relief-payday-loans-find-great-payday-loan-consolidation-programs/ for details

Credit amount and mandate contract

Credit amount and mandate contract

The form of employment (employment contract, mandate contract) has no major impact on the bank’s decision on the amount of credit granted. Whether the bank decides to grant us a loan in the amount that we apply for or whether it will reduce it is determined by the factors described above affecting creditworthiness. It should also be borne in mind that each lender has internal procedures which it follows during financial analysis.

The amount of credit granted under the commission contract is primarily affected by:

  • the amount of income
  • age
  • type of employer
  • credit history
  • housing situation
  • number of dependents (most often it concerns the number of children)

To best assess your options, it’s a good idea to consult with a financial advisor who can pre-assess your creditworthiness and the amount of any credit. However, this information is preliminary. An analyst working directly at the head office of a selected bank or director at the level of a bank branch decides whether to grant or refuse a loan under a mandate contract .

What is worth taking to a meeting with a loan broker?

What is worth taking to a meeting with a loan broker?

  • all mandate contracts,
  • account printouts documenting the effect of remuneration
  • identification.

These are the basic documents that should usually be attached to the loan application. Depending on the offer, the bank may also expect additional documents, such as PIT, income statement, repayment schedule of another loan (if we want to consolidate liabilities).

As you can see, it is not the type of contract that plays the main role in processing the application. Regular, documented income and a positive credit history are the most important for the bank. People who work under a mandate contract can be just as active on the financial market as people with an employment contract. Therefore, a loan under a mandate contract is a full-fledged product that anyone employed under a civil law contract can apply for.

Expert Notes Napsa Finance

Expert Notes Napsa Finance

Failure should not be assumed in advance if we want to obtain a loan based on a civil law agreement. In some banks, this source of income is treated as equal to an employment contract. Other institutions may, in turn, have internal arrangements related to credit under a mandate contract, e.g. shortening the loan period or reducing the maximum amount to be obtained.

However, beware of the large number of credit inquiries – often they are the main refusal criterion, not the type of contract. Your financial situation will be analyzed regardless of whether you want to get a loan under a mandate contract or if you have another source of income. Don’t be shy to ask for help. If you have a problem with getting a loan under a mandate contract – contact a trustworthy credit broker who will not make unnecessary inquiries and obtain a loan on the best terms.