The first step that the individual interested in getting financing must take is the application for it, indicating the purpose to which the demanded money is going to be used. Following the application, the financial institution will carry out a general approach to the transaction, for which it will be necessary for the client to give the relevant documents.
In most cases these documents are:
- Document issued by an official body identifying the client.
- Land register extract from the Property Registry about the asset that will serve as collateral.
- Indication of the client’s marital status (indicating, if married, the corresponding marriage settlement).
- Provision of supporting documents that prove that the client can meet the payment of the requested loan (for example, payroll, income tax return, assets list, etc.).
Once every necessary documentation has been received, the financial institution will carry out the analysis of the requested loan. If every required condition is met, it will grant it.
Once the loan is formalized, the financial institution will periodically issue the receipts through which the client gradually repays the loan and pays the agreed interest. These receipts are usually direct debited for their automatic monthly debit in a bank account of their ownership opened at the lender’s own financial institution.
