Online loan application form: why is so much information requested?
- Author: Iohan Colarusso
- Number of comments: : 0 comments
If you are looking to apply for a loan online in Switzerland, but you are wondering why so much information is requested, especially given that this data is very sensitive for some people? What are the differences between the long and short versions of the form?
5-step and 1-step forms
The website contains 2 loan application forms:
- A long version containing 5 steps: your project / your identity / your contact details / professional situation and income / your financial expenses
- A short version with only one step designed for those who do not wish to input sensitive information online. But whichever you choose, you cannot escape! You will nonetheless be required to provide all the information requested in the long version either by telephone or in person to create the file
Complete, transparent information = trust by the banks
In order to grant a loan, the banks that lend money to individuals do not request any pecuniary guarantee from you, such as securities or for example a vehicle as collateral. In this case, everything is therefore based on the notion of trust.
Consequently, the more complete and transparent the information you provide, the more the banks will trust you and be inclined to grant you a loan, provided that you meet the conditions defined by law.
Criteria common to all banks
First and foremost, the information regarding your age, your nationality and your professional and financial situation will determine whether you meet the basic criteria for obtaining a loan. These criteria are common to all banks as they are governed by the Swiss consumer credit law.
Then, for those that meet the basic conditions, weightings will be attributed according to different criteria (they can be common or different depending on the bank); these weightings correspond in some respect to a trust index known as the credit score. If the latter is low, this can be grounds for refusal.
Step 2: your identity
If you are married, you will be considered to be more stable than a single person. Consequently, your credit score will contain more points.
Steps 3 and 4: your contact details and professional situation
The questions « How long have you been working in your current position and how long have you been living at your current address? » inform banks about your degree of stability.
Therefore, the longer the durations, the more points in your credit score.
Steps 4 and 5 of the form: your income and expenses
The information regarding your income and expenses (rent, board, etc.) are essential to banks in determining whether you meet the budget criteria imposed by Article 28 of the Swiss consumer credit law with regard to the loan amount requested. These criteria constitute justified grounds for refusal.
If we observe, for example, that the loan amount you request is too high in relation to the budget criteria and that your chances of acceptance by banks are almost zero, we will be able to inform you of the amount at which your application may succeed.
Comprehensive 5-step online form = instant provisional response
As soon as you answer the questions in the 5-step form, we are able to give you an instant, provisional response with 3 possible statuses:
- Green: based on the information provided, the provisional response is positive, however this does not 100% guarantee a positive answer from the bank
- Orange: your file requires further examination before announcing a probable outcome
- Red: based on the information provided, your application does not meet the basic criteria governed by the Swiss consumer credit law
Criteria specific to each bank
We have briefly discussed the criteria common to all banks, however you must be aware that the latter also apply criteria specific to their institution.
CC Crédits Conseils SA is aware of these criteria specific to each bank, thus enabling us to direct your application to the bank best suited to your profile and that will offer you the highest guarantee of having your application accepted.
- Categories: Elements for your file