You need to take out a bank loan but are not sure that you meet the conditions required by the banks. Indeed, to give their loan agreement, banking establishments carry out a customer risk analysis. Each establishment determines its own conditions of acceptance, but it is still possible to identify the most recurrent criteria.
1 – Fixed and regular income
For the self-employed, business leaders and the liberal professions, seniority will be taken into account. Fixed-term contracts, temporary contracts or internships are generally not taken into consideration.
2 – A low debt ratio
The debt ratio is the ratio between net household income and total monthly loan payments. It is calculated as follows: Debt ratio = (Total monthly payments X 100) / net salary Example for a person with a net salary of €1500 and €300 of monthly loan: (300×100)/1500=20% In France, credit institutions consider 33% the maximum debt ratio . In this example, the total monthly loan payments must not exceed €500/month. Sometimes, the granted debt ratio can be higher than 35%, everything depends on the rest to live.
3 – Sufficient rest to live
The remainder to live represents what remains each month to a household fixed charges and deducted monthly credit payments (bills, taxes, transport…). Each bank can apply its own recipe. However, we can start from the following method of calculation Remaining to live = total resources (salaries, pensions, 70% of property income)-total fixed charges (rent, taxes, alimony)-total credits. The remainder to live is highly regarded by credit agencies. To give an idea, the minimum living allowance for a single person is €750, €900 for a couple without children, to which is added €150 per child.
4 – Age
It is now possible to borrow beyond 65 years but the conditions are draconian. The cost of insurance is then very high, and sometimes results in exceeding the wear rate in force, resulting in the refusal of bank financing. Similarly, before the age of 25, it is very complicated to obtain credit, even for consumer credit.
5 – Personal contribution
The personal contribution is not an essential factor to obtain a loan although it is often requested 10% of contribution in the case of a mortgage. The more the remainder to live is important, the more the banks are likely to grant a loan without contribution.
6 – A healthy financial situation
Banks do not grant credit to registered persons. They systematically question the Banque de France to ensure that no filing is in progress. There are several types of filing: The FICP: national file of credit repayment incidents to individuals The FCC: central check file Registration in a Banque de France file, whatever the nature of the banking ban, is the main reason for refusal of financing by banks.
How to obtain financing?
First, approach several banks and compare the offers or contact a credit broker who will submit the best proposal to you after questioning his banking partners.
What solution, in case of bank refusal?
It is possible to find financing without going through a bank. Today, there are several alternative solutions to the traditional banking circuit: loans between individuals, for example, regulated by law, can be an option.
It is also possible to opt for crowdfunding via various crowdfunding platforms which today make it possible to propose any type of project.
For sums between €300 and €5,000, there is microcredit, but beware, this solution is generally used by people in a difficult financial situation, the objective of microcredit being to change this situation positively.
Finally, if you own real estate, real estate portage may be the solution. Indeed, Real Estate Portage is an innovative financing solution that allows owners, individuals and professionals, to free up cash thanks to the value of their property while staying at home.
The Portage real estate is based on the following criteria: – The amount of the need, which must be less than or equal to 65% of the value of the property – The condition of the property (main residence, secondary, rented property, SCI, walls or commercial offices …) – The locality of the property: it must be located within an area with an active real estate market
The objective of Portage is therefore to allow all owners: entrepreneurs, traders, craftsmen, unemployed, retired, bank accounts… to find financing by making their real estate assets liquid. This is to “monetize” or make “liquid” its assets.