Lending has become an integral part of modern life. They buy apartments and cars on credit, pay for travel and education, repair, and even updating the wardrobe with borrowed funds. But what if one loan has not yet been repaid, and the funds were needed again? In such situations, the question arises as to whether they will give a loan, if there is a loan that has not yet been repaid.
General requirements for borrowers
In most cases, the loan processing procedure does not require a significant number of documents and takes only a couple of hours.
The potential borrower must:
- Be a citizen of the Russian Federation.
- Have registration in the region where the loan is issued.
- Be employed and receive stable wages (have income in the case of individual entrepreneurial activity).
- Have a good credit history (do not have overdue payments on previously issued loans).
- Have a guarantor and collateral (this requirement may not be put forward by the bank).
Minimum package of documents
If the client meets all these requirements, to send a loan application and receive the treasured amount, he needs to collect the necessary package of documents.
What you need to provide for a loan:
- Identity document (Russian passport).
- Certificate of registration at the place of residence.
- Taxpayer Identification Number (TIN).
- Military or student ID.
- Insurance policy.
- Driving license (if any).
- Foreign passport (if any).
According to the requirements of banking institutions, only a passport and a certificate of registration are required to be presented. The rest of the list of documents may be requested to improve the proposed conditions or increase the chances of receiving a positive response.
The impact of debt on decision making
If in the case of obtaining the first loan there are practically no problems, then when applying for a second loan, especially if the first has not yet been paid, certain difficulties may arise.
What banks pay attention to when applying for several loans:
- Overdue payments and credit history. The banking system is designed in such a way that when applying for a loan, information about how timely payments for other loans are received will be automatically received. This is not only about loans issued in one bank. Thanks to the BKI (credit bureau), which receives information from all banks about the reliability of borrowers, information on late payments will become known even to the bank that the client first contacts.
- The ratio of the monthly income and expenses of the borrower. When considering an application for another loan, the bank takes into account not only the monthly payment for a new loan, but also all the costs associated with paying previously issued. If the borrower does not have enough income, but the credit history and documents are in order, he may be offered a smaller loan amount or extended loan period to reduce the financial burden.
It is impossible to unequivocally answer the question of whether they will give a loan, if there is another loan. But there are circumstances that the borrower can influence to increase the likelihood of a positive decision on the application.
How to calculate the required income
When choosing a creditor bank, it is necessary to clarify what maximum portion of official income can go to loan payments. In some financial institutions, a client can spend only 5-10% of earnings on loan contributions, in others this figure is higher - up to 25%. A positive effect on this indicator will be the receipt of wages on the card of the lending bank - in this case, you can count on the total loan payment, up to 30% of the official salary.
With insufficient basic income, there are 3 options for overcoming the current situation:
- Try to get a credit card. The cash limit on it is calculated using a slightly different formula: the amount of payments on existing loans is deducted from the client’s monthly income, the received number is multiplied by three.
- If there is additional income that can be documented, it is also necessary to inform the bank employees about it and provide the necessary documents.
- Get a joint loan for yourself and any of the relatives. When making such a loan, the income of all parties to the contract will be taken into account. But it is worth considering that the responsibility for such a loan will also be borne by all co-borrowers, as well as their credit history will be taken into account when considering the application.
Why it is better not to hide existing debts
If the question arose about whether they will give a loan, if there is a loan, it is better to contact the bank and, together with its employees, calculate all the possible options and risks associated with obtaining a new loan.
It is not recommended to hide the presence of outstanding loans for two reasons. Firstly, information on previously issued and not yet closed loans will become known when considering the submitted application. In such a situation, even if payments are received on time, the bank will most likely refuse to issue a new loan.
Secondly, having assumed overwhelming obligations on loans, clients themselves drive themselves into a debt hole. Sooner or later, overpayments become overdue, interest and penalties for late repayments grow, and it becomes almost impossible to pay off such debts.
Making a loan with a good credit history
If the borrower has a good credit history, the procedure for processing a new loan is no different from lending to first-time clients. It consists of choosing a suitable bank, filling out a questionnaire and sending an application for cash. After that, the bank employee receives a response to the submitted application and voices it to the client. In case of a positive decision, the bank employee and the borrower sign an agreement. Next, the latter receives money.
To apply for a new loan with a positive credit history, you can contact any banks. If some of them fail, you should not give up - most likely, they are simply reinsured. Already at the next institution, the client will receive a positive response.
Who lends to debtors
But whether they give a loan with bad credit history is a rather controversial issue. Making new loans to debtors is usually a taboo for banks. Therefore, customers with overdue payments have to apply to credit unions, funds, cooperatives.
When contacting such organizations, it is worth considering the following:
- There is a serious danger of becoming a victim of fraud, as the activities of these companies are not regulated by law.
- Overstated interest rates will be offered to customers.
- Hidden commissions may be present.
If the question is whether a loan with a bad history is given, it is recommended that you review the lending institution and carefully study the model contract that must be provided at the office of the company or be publicly available on its official website before applying for any loan.
The influence of the type of loan on the probability of obtaining the next
Most often, potential bank customers are interested in loans for the purchase of housing, cars, household appliances or inappropriate loans that can be spent on any needs.
Consumer loans, which include the last two categories, are usually issued for insignificant amounts, so the requirements for borrowers are loyal, and the answer to the question of whether they will give a consumer loan in the presence of other loans is most often positive.
In the case of a loan to purchase a home or a vehicle, the monthly payment will be much higher due to the large amount borrowed. Therefore, whether they will give a mortgage, if there is a loan, depends on the income of the borrower.
Dealing with Debts
Making several loans is advisable only in case of urgent need. If the client is considering the option of issuing a second loan to pay off the previous one, it is recommended to consider the option of debt restructuring. The essence of this proposal is to repay a previously issued loan by drawing up a new loan agreement for a longer term or on more favorable terms, so that the amount of the monthly payment is reduced, it will be possible to repay the loan on time.
Lending is a serious assistant in the life of a modern person. So that it does not turn into an insoluble problem, it is important to carefully consider the number of issued loans and compare them with your capabilities.
