What affects the interest rate? Income, Client Credit, Loan Amount and Maturity. If you want a higher loan, higher income will help you.

Client evaluation is an internal matter of each financial institution. Every client in Credit Adviser is judged individually, so there is no guidance on how to get the most ideal interest rate. However, here is a few things that affect the interest rate.

What affects the interest rate?

What affects the interest rate?

If you want a higher loan, higher income will help you. There are also two jobs, ie a secondary income. Credit Adviser only takes into account the official income that you can document. A self-employed person can also influence the amount of his / her income by giving all his / her income in a tax return, but on the other hand, he / she will also have to pay higher taxes and levies. The excessive and frequent indebtedness or delay in repayments may also have a negative impact on your loan application.

 

Client creditworthiness

Client creditworthiness

The actual amount of income is not about your creditworthiness, but is one of the deciding factors whether you will be granted a loan. The client’s creditworthiness is determined mainly by income and expenses. Credit Adviser is also interested in knowing whether you can manage your debit or credit cards correctly and whether you use them reasonably.      

 

The applicant’s monthly income includes income from employment, income from business, old-age, retirement and orphan’s pensions, rental income, social benefits, maternity and parental benefits, income from capital, maintenance, and the like.

 

Monthly expenses include the subsistence minimum for each household member, housing costs, repayments of previously granted loans, loan repayments for which the applicant has issued a guarantee, lease payments, alimony and others. Optimally, the amount of monthly loan repayments should not exceed 30 percent of net income.

 

When evaluating a client, it is also taken into account how long the client is employed, resp. how long he does business. An applicant for a loan should not be in probation and an employment contract of indefinite duration is an advantage. A self-employed person who has been doing business for at least a year shows his business income in Slovakia and submits a tax return and a  Credit Adviser Euro receipt .

 

Credit amount and maturity

Credit amount and maturity

In general, the higher the credit, the better the interest the client can receive. To a certain extent, this also relates to much longer maturities. Conversely, with a shorter maturity, a higher interest rate is usually associated. On the other hand, it should also be borne in mind that the longer the loan is repaid, the more it will be reimbursed, even at a lower interest rate.

 

To know the specific parameters of your loan, you must first register on our website websiteand fill out the application with the exact amount of the loan as well as the maturity. Documents according to the job position are also required to process the application. It is important that you provide as much and as truest information as possible so that the calculations match the actual interest rate you can count on.

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