What are the requirements for consumer loans?
May 3, 2020
If you are considering taking out a consumer loan, you as a consumer are likely to have specific requirements and expectations for the loan you are considering taking out. On the other hand, of course, the lender also has some specific requirements for you that you must meet to get the loan. These requirements are set to reduce the risk that you will not be able to repay the loan.
In this article, we will look at exactly what requirements you as a consumer can expect in the loan market, and in this way gain a better understanding of what is expected of you in order to approve the loan application for a consumer loan.
What are my requirements for a consumer loan?
The requirements set for you for a consumer loan vary from one lender to another. This also applies to the specific details of the loan. For this reason, it is important that you check what requirements the specific lender has on their website. You can also find more information about this on various loan portals online.
Although there is a great variation between the requirements, there are also many similarities between these requirements among the loan companies. However, there are also great similarities between the requirements. Therefore, it is useful to still get some information about what the general requirements are.
General requirements for consumer loans – age limit
The very first general requirement that you have to meet is the age limit set by the lender for you to borrow money. The age limit between lenders is a minimum of 18 years, but can also often be higher than either 20 or 23 years.
In addition, in most cases, you must be registered with a permanent home address in the country. Many of the loan companies also require that you have been resident in the country for a certain number of years.
Not registered with SIS and no payment remarks
It is a crucial requirement of most lenders that you are not registered with SIS (the State Collection Agency) or have payment notes. Also, it is usually not possible to get a loan approved if you have a lot of debt. This is for your own security and the lender’s assurance that you can repay your loan in full.
Have a fixed income
Another requirement that is common to most lenders is that you usually need to be able to show documentation that you have some form of fixed income. You can do this by including an annual statement or paycheck. It is not always a requirement for exactly how high your income should be, but some lenders still have a minimum requirement for this.
What is crucial here is that you can show documentation that you have a fixed income, in order to give the lender a certainty that you will be able to service your consumer loan.
What if I don’t meet consumer loan requirements?
If you are unable to meet the requirements of a particular lender, you will most likely not be approved for your consumer loan. That being said, you still have the opportunity to get a consumer loan granted by other lenders.
One important thing to know is that it is completely free and there is no obligation to submit a loan application. So even if you are unsure if you qualify for a consumer loan, there is no problem in submitting multiple loan applications.
If you yourself think you may have low income, it is probably better to wait or apply with a co-applicant, which increases the likelihood of getting your loan application approved.
Compare the requirements of individual lenders
We hope with this that you have a slightly better insight into the requirements that are set for you who are considering taking out a consumer loan. Now you can check out the specific requirements of some of the loan companies that you can find more information on here on our website, compare their offers, and find the lender that best suits your personal finances and personal needs.