Moneyadviceblog » Loans » Bank Loan: Procedures To Follow

Whatever the type of project you want to realize, there are many kinds of possible financing, such as a loan from the bank. By following this article, discover the procedures to follow regarding the application for a loan from the bank. So, without further ado, let’s dive into this blog and learn everything you need to know about bank loans.

Simulation of the loan


Whether you want to finance a car purchase, a real estate project or a trip, the first step in taking out a loan is to do a loan simulation. It takes into account many factors such as the desired amount, the nature of the project, the duration of the repayment and the amount of the monthly payment.

From this information, you will know the interest rate, the amount to be repaid each month, the amount of interest, the loan insurance rate, the total amount excluding insurance and the amount of optional loan insurance. It is advisable to vary the term of the loan and the amount of the monthly payments to analyze the different options available.

Comparison of the different possible offers

To know all the available loan offers, analyze the APR or annual percentage rate of charge. It includes the file fees, the insurance and the interests of the loan. These elements can vary from one organization to another. Take your time before selecting the bank.

Submitting the credit application and various supporting documents


Once you have selected the right loan offer for your needs, apply for a loan with the organization concerned. To do so, fill out a form on the spot indicating your professional, personal and financial situation. Certain documents must also be attached to this application as proof. Here are the essential documents: the identity document, the proof of income and the RIB.

To increase your chances of obtaining a loan from the bank, do not hesitate to provide other proof of your solvency. If it is a real estate loan, you must also provide the last 3 bank statements and a copy of the deed of sale. In the case of a car loan, a home improvement loan, a student loan or any other affected credit, you will need proof of the expense.

Analysis of the file and the loan offered by the lender

Once your file is complete, the lender will analyze it. The rate may be increased or maintained at the end of this study. This depends on the borrower’s profile and the risk level. There is also the debt ratio to take into account. It is determined according to the borrower’s regular income and regular expenses. It must not exceed 33%.

Signature of the contract and deadline for releasing the loan

If all the conditions imposed by the lending institution are acceptable to you, move on to signing the contract. You have one day to sign the lease or not. From the day you accept the loan offer, you have 14 days to withdraw. Once this period is over, you are obliged to repay the loan.

You should know that it is possible to request the release of funds seven days after signing the contract. However, while waiting for the credit to be made available to you, no transactions are allowed; no payments, no reimbursements and no expenses. For a mini loan, the release time is shorter: between 24 and 72 hours. In short, the application for a loan at the bank is intended for adults with a stable and regular income. It is also reserved for American residents and individuals.

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