PROCEDURES AND CONDITIONS TO BANK LOANS

To solve the financial problem, many individuals have chosen to use the banks capital. However, because they do not know the procedures and conditions for a bank loan, many people have difficulty accessing capital, and the loan application does not meet the requirements, so it is not approved.

Therefore, before applying for a bank loan, individual customers need to understand the general conditions to be more prepared, and the procedure is therefore faster.

1. Conditions for bank loans

1.1 Conditions for borrowers:

Subjects eligible for bank loans:

• Individuals with Vietnamese nationality or foreign nationality.
• Individuals from 18 years old.
• Have a valid ID/Citizen Identification Card/Passport
• The purpose of borrowing money from a bank is to serve a legitimate purpose.

Subjects not supported by banks for loans:

• Member of the Board of Directors, Supervisory Board, General Director (Director), Deputy General Director (Deputy Director) of the bank.
• Persons who wish to use loan capital to carry out business investment activities in industries and trades prohibited by law.
• For customers with bad debts from banks or low credit scores, banks can completely refuse to lend.

1.2 Conditions of income

Customers need to prove their stable income through a labor contract (effective) with salary statement (original) from the last 3-6 months. The bank will consider the borrowers income level with the loan amount to assess the debt repayment ability. Besides, some banks also add different conditions.

1.3 Conditions of collateral

To get a bank mortgage, customers first need to have collateral to perform their civil obligations. Customers can use the following types of collateral (Special Assets) to get a mortgage at a bank.

2. Bank loan procedures

Most of the lending process at banks has the following steps in common:

Step 1: Prepare documents

Usually, bank staff will ask customers questions around: the purpose of the loan, how much money to borrow, how long the loan is, what is the collateral (if mortgage), income How much is the average monthly income, is the source of income stable, the main sources of income...

After the survey, the bank staff will review each loan and guide the customer to complete the application to ensure the loan conditions for that bank.

Step 2: Receipt of documents and financial appraisal

After receiving the loan application from the customer, the bank will confirm the information and re-evaluate the application. Each bank will have its own appraisal regulation with the aim of limiting risks and increasing the possibility of loan repayment.

The more complete the required documents are provided by the customer, the faster the bank will appraise, the higher the chance of loan approval.

Step 3: Loan approval

After assessing the loan application, the staff makes credit proposals and submits them to the competent authorities for loan approval. After that, the bank staff will send a notice to the customer about the approved loan.

Step 4: Disbursement

If the application is approved, the customer signs the contract and the bank will disburse (provide the amount that the customer is loaned according to the contract). Customers can receive directly by cash or bank transfer.

Bank loan procedures are usually done and completed in 1-3 days. However, for complex loans, this period can be as long as 1 week.

3. Loan documents need to be prepared

When applying for a loan, individual customers need to have documents including:

Application letter for bank loan

• According to the individual form of each bank.

Legal records

• ID card/Passport of the borrower and the borrowers spouse
• Passport/KT3.
• Certificate of singleness/Marriage registration.

Financial records

• Papers proving income from salary: Labor contract, Working decision, Bank statement of salary payment or salary slip of the last 03 - 06 months.
• Documents proving other sources of income: House purchase and sale contract, Stable car rental contract in the last 6 months.

Loan purpose profile

• Consumer loans: List of things to buy...
• Loan to buy real estate: Contract/Agreement/Deposit…
• Borrowing for house repair: Construction contract/Establishment table...

​Documents of collateral (if mortgage loan)

Certificate of property ownership, specifically:

• Certificate of land use right, house ownership (red book, pink book), construction permit...
• Mortgage by means of transport (car): Registration, Insurance…
• Valuable documents such as passbook...

4. Which appraisal unit should I choose?

Indochina International Appraisal & Investment Joint Stock Company (INA) is one of the leading prestigious appraisal companies with a nationwide system of branches and offices. Besides, our SunValue service will give customers the best service experience, customers will be consulted and helped to determine the value of each type of property to determine the value of each property. Get the most reasonable price to help customers achieve their best goals.