I / We are aware that the bank uses the information for its credit decision. If you want to take out a loan from a bank, the bank will require the applicant to provide information about himself. Own liabilities and guarantees: as a borrower. Of course, you are not obliged to fill out the self-disclosure form.
Credit without self-disclosure
This is self-disclosure and why does the house bank want it? One of the documents that must be completed for a loan is self-disclosure. Total income: income from self-employment and employment, child-raising allowance, pensions, etc.
Self-disclosure is the most suitable for this. This shows whether the customer is able to finance a (further) loan.
The voluntary disclosure limits the risk for the financing banking group, which wants to hedge against credit defaults as much as possible. If the credit is requested from the commercial bank, they can resolve most of the questions listed above before speaking to the customer. The data from the customer data and account movements are transferred.
If the borrower refuses to provide information, no loan contract will be concluded. Because both national and foreign credit institutions consist of self-protection for self-disclosure. It protects the borrower from excess coverage. Personal loan as a replacement? If a borrower does not want to make a voluntary declaration, he has to look up other ways.
Among other things, it is characterized by the fact that it does not require Credit Bureau information for a credit agency. Rather, the investor decides whether to make something available to a personality and his project.
However, the credit institutions do not cut back on voluntary disclosure.
Compared to the house bank, they look at the more relaxed environment of the Internet: They refer to self-disclosure as a means of checking the information with regular customers. Therefore, the borrowers would do well to fill out the registration forms completely and completely. The motives of the credit brokers for the implementation of the voluntary disclosure are meaningful. These are not only contact persons for borrowers, but also for lenders.
Applicants who are unable to repay a loan will not be admitted to the mediation process. In this case, the mediation process is not carried out. This ensures that the investors in the trading platform are intact and that the business model is functional.
Borrowers should use their common sense in this position
Apparently they are in the lucky fan base of giving everyone a loan. Because if a loan gets along without a credit check and affordability calculation, it has to have an enormous interest rate. Because financially weak debtors are particularly interested in this type of loan. As a result, however, many of these loans would be canceled because the financial situation would not improve due to a higher credit burden.
Nevertheless, a small proportion of the debtors would probably be able to repay the loan, including interest. Therefore, the lender would have to charge a very high rate. He was able to compensate for his defaults from the bad debts. It may not be the cheapest way to apply for a loan. It does not require self-disclosure or an extract from Credit Bureau.
However, because the relationship usually ends with money, those affected should conclude a loan contract. The loan contract should also state whether the loan will be repaid in installments or in an amount.