What documents do I need to submit for a loan application?
MoraBanking | 09.07.2016
When a customer applies for a loan, we ask them to provide us with a number of documents to process their request.
This is because we need proof of the identity of the individuals who will be taking out the loan. We must also check their credit capacity and the loan purpose and assess whether any additional guarantees or guarantors are required.
Firstly, we will need documents identifying those involved in the loan (holders, guarantors, etc.).
In Andorra, the passport is the main identification document both for individuals born in Andorra and for foreigners. Foreign residents must also submit their residence and work permit as well as the identity card or passport of their country of origin.
Documentary evidence of the loan purpose
In order to review the loan application, we will also need proof that the money will be used for a specific purpose. It is important that the product or service to be financed fits with the purpose of the loan requested from the range of MoraBanc financing products.
Depending on the loan requested, you will need to submit different forms of documentary proof (e.g. an agreement to sell property, a formal offer, a proforma invoice, a precontract or a quote, etc.).
Documents required to review the applicant’s credit capacity
In order to determine the applicant’s borrowing capacity, we need documents to identify and justify their recurring income and expenses. This will enable us to assess the applicant’s loan repayment capacity and determine the maximum loan amount they can apply for.
The documents required to justify income are payslips for the last three months and an up-to-date CASS points statement.
If the applicant expects to receive other one-off income payments, they can provide relevant justification and the payments will be taken into account in calculating their borrowing capacity (e.g. a down-payment agreement or a lease on property).
As far as expenses are concerned, the main documents required are information relating to the property (lease, mortgage deed, etc.), Direct Debit payments and any other recurring charges.
If the applicant is self-employed, we will request additional documents relating to their business activity and tax returns.
Where the applicant is a new customer, i.e. if the account is opened to apply for the loan, they must also provide details of their position and account movements for the last three months from the bank they normally bank with.
Lastly we will need a list of assets signed by the applicant with details of their family situation (marital status, dependent minors, etc.), household income, assets (property, securities, account balances, etc.) and liabilities (current debts with credit institutions).
Guarantee and guarantor documents
Depending on the type of financing requested and the credit capacity of the loan holder/s, additional guarantees may be required, such as a mortgage on property, a pledge on balances or a guarantor. In the case of a mortgage guarantee, both a down-payment agreement and an updated valuation of the property are required. Guarantors are required to submit the same documents as holders as they are subsidiary debtors and will have to repay the loan if the holders fail to meet their payment commitments.
Remember, at MoraBanc we want to help you achieve your dreams. To do this, we provide you with a wide range of loans and mortgages. We can finance projects of all sizes, from the purchase of a home to the purchase of a car, or help to pay for your children’s studies.
MoraBanc brings you tailored solutions. For more information with no obligation, please contact your account manager and request a loan quote.
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