admin Posted on 8:11 am

Condition for obtaining a payday loan

You must find out about the “payday loan condition” before you can take out a payday loan. The individual must first make a request to a financial institution or a bank of his choice. Read for a critique

However, for the file to be validated, the individual must meet a few acceptance criteria. Even if we say that this type of credit is open to everyone, there are still a few rules to follow.

What are the conditions for obtaining a payday loan?

Age: be of legal age

This first point makes it possible to oust several candidates for a payday loan. Indeed, even if this contract is indeed open to all, there is however a minimum age to be able to register. Only adults can apply for consumer credit. It is therefore an ideal alternative for young people who cannot benefit from significant savings. Be that as it may, some banks also allow minors to take out a payday loan, provided they are guaranteed by their parents or even their grandparents.

Stability: Having a reliable income

Bankers are also particularly concerned with the stability of the loan applicant. The first aspect is the time of employment. The longer the person stays in the same position in a company, the better their place in the professional environment. As a result, he will be less likely to find himself unemployed. However, in the world of credit, employment is the pledge of an entry of money. It goes without saying that by losing his job, the lender will no longer have the capacity to regularly pay his debts. By being stable, professionally speaking, you are therefore more likely to get your loan.

Domiciliation: be Belgian or Luxembourgish

One of the main obligations to take out a payday loan is to have a checking account. He must be domiciled in Belgium or Luxembourg. Indeed, it is only with this condition that financial institutions or banks can charge your monthly payments. But it is also a way to prevent late payments. However, Belgian or Luxembourg nationality is not compulsory for the subscription to a payday loan, only the bank account must be.

The obligations to be fulfilled for “payday loan condition”

Before subscribing to a payday loan, certain rules of the consumer code and certain obligations generally required by lending financial institutions must be observed. Most of the time, these bonds provide maximum guarantees for the bank. It must in fact ensure that the lender is well able to repay the amount borrowed within specific deadlines.

  • The borrower should normally be in good financial health. To verify this point, the bank or the credit institution has the possibility of obtaining information from the bank. The borrower should also not have a banking ban.
  • The borrower’s salary must fully cover the deadlines without causing significant discomfort in his daily life. All loans, consumer or not, must strictly comply with the rule of 33% maximum on the borrower’s overall income. Beyond this threshold, you will be less likely to have your payday loan.
  • Also, the borrower must agree, through a loan contract, to repay the amount borrowed in full, in addition to the interest requested by the bank. If the borrower cannot repay his monthly payments on time, the creditor has the right to charge additional terms. Before committing, therefore, consult these conditions set out in the subscription contract.
  • And even if it is not a compulsory point, having an open-ended employment contract can favor your request for credit. This contract is a reimbursement insurance for banks.

Leave a Reply

Your email address will not be published. Required fields are marked *