Since the repayment of an ordinary consumer loan is made in monthly installments, it is also known as an installment loan. The documents required by the bank for the granting of an installment loan are not regulated uniformly. If bank statements are required, this usually refers to statements from the past three months.
What is the point of submitting bank statements?
Some banks do not grant installment loans without requesting the bank statements. From these, you can see which expenses are actually incurred and can therefore check the information provided by the borrower regarding his financial obligations. The account statements also show whether the loan applicant is using an existing overdraft facility or not; the Credit bureau information only provides information about the existence of the available limit. Sending bank statements is particularly critical if they show a direct debit due to insufficient funds in the account because the lender derives an increased risk of default from this event.
Account statements are not always required
In the case of online processing in particular, many banks approve the installment loan applied for without checking the bank applicant’s bank statements. Most banks use lending without comparing their bank statements to average expenditure on the budget and only take into account the main earned income. For loan applicants with unusually low expenses and additional income from a part-time job, the bank’s request for bank statements is therefore an advantage when checking their creditworthiness.
Understandably, many borrowers feel overly spied on when they have to provide their three-month statements. This measure is also not absolutely meaningful, because the current account statements submitted do not indicate whether the borrower may have also withdrawn amounts from a savings account. Installment payment agreements are always made with mail order companies as earmarked installment loans without account statements.
In any case, they only ask about the disposable income in exceptional cases and with large order amounts; they never request account statements. However, a distinction must be made between the installment payment agreement made directly with a retailer and the installment loan brokered by the retailer, which, depending on the retailer’s partner bank, may well require a request for account statements.
However, no consumer is required to disclose their full expenses and income when lending, as there are enough offers for an installment loan without bank statements. These loans are also no more expensive than installment loans, the payment of which requires the presentation of bank statements.
Some banks can even apply for an installment loan without bank statements and without proof of salary, but in these cases a slightly higher interest rate can be expected. The results of credit comparison calculators do not always show whether a bank requires bank statements to be presented for lending, so an additional visit to the bank’s website is useful.