Loan Application

If you need a loan and have chosen a suitable offer, the next step is to submit a loan application. Today this can be done in many different ways. Everyone can choose the method that suits them best — for example online (with PostIdent) or in writing by mail.

A loan can be applied for at a home bank or branch bank or through a reputable loan broker, such as MAXDA. A loan broker can often find a more favourable package for you by comparing different offers than a home bank or branch bank.
There are also alternative ways for checking your creditworthiness and collateral at a loan broker instead of the classic Schufa inquiry.
The information required in a loan application varies considerably depending on the type of loan. Therefore, anyone who wants to apply for a loan should familiarize themselves thoroughly with the loan application. 

What information is required for a loan application?

Before a borrower submits a loan application, there is usually a loan inquiry. In this check of your collateral and creditworthiness, banks or loan brokers assess whether the loan request can generally be granted. This includes, for example, a comparison of monthly income, monthly expenses and the desired loan amount. A loan will only be approved if the repayment of the requested loan and the interest payments fit into your personal household budget. 

Other factors also play a role, such as the length of employment with the current employer. The details on a loan application are therefore much more extensive than the information in an initial inquiry. It is absolutely important that the information is accurate and complete, otherwise a loan application cannot be processed quickly. In addition, a loan application records all details about the desired loan terms (interest rate, etc.) where several options are available. This is often the case, for example, with the loan term.
On a loan application you will usually tick which of the offered term options you prefer. Information about the loan amount, but also more specific details such as your bank reference account from which all loan instalments will be debited, must typically be provided on a loan application. 

Who can apply for a loan?

Of course, there are some prerequisites that must be met in order to submit a promising loan application. Factors such as age or creditworthiness are used by lending institutions, banks and loan brokers to check the applicant's creditworthiness. 
There are some basic rules, such as the minimum age. In the German lending environment you must be of legal age — i.e. at least 18 years old — to be allowed to submit a loan application. Only in this case is a private person fully legally competent.
A regular income is also important for the basic approval of a loan application. These earnings must be at least EUR 850 per month. However, even if you do not meet these requirements, approval of the loan application is possible by providing a guarantor. The guarantor must, in turn, meet these basic conditions. For many life situations where a loan is urgently needed but the basic requirements are not met, having a guarantor can be very helpful.
In the case of study financing, for example, a loan can shorten your studies because time-consuming student jobs are no longer necessary (student loan). It is therefore worth asking friends or relatives whether they would be willing to guarantee the desired loan application. Taking out a loan can also make sense for unemployed people, for example if the car suddenly breaks down and is urgently needed for job search or a new job. Here too, a guarantor can be the solution (loan for unemployed).
Loans that are not recorded in the Schufa (or other credit agencies) can also be applied for at MAXDA. These are granted as small loans up to a maximum amount of EUR 5,000. The requirements for this loan type are employment and an income of at least EUR 1,130.

Why is detailed information necessary in the loan application?

Very different lending conditions apply depending on the loan variant. Whether the conditions for a specific loan inquiry are met can therefore only be decided once all relevant information is available.
For example, there are special conditions for civil servants and public-sector employees, because the lender can be confident that a regular, permanent income exists. Those who have already worked for a company for a very long time can also benefit from these special conditions when applying for a loan. Due to statutory protection against dismissal after long company affiliation and the reduced likelihood of a dismissal or voluntary change of employer, there is also a high payment security. As a result, the terms (e.g. interest rate) for the loan application are particularly favourable and longer loan terms are often approved.
That is why it is important that the employer and length of employment are recorded in the loan agreement. But other details such as the current address and full date of birth are also important.

Steps from the loan application to disbursement

If you have checked whether you meet all the conditions to have a loan arranged via MAXDA, it's time to put it into practice. First you submit a loan inquiry. This inquiry is completely non-binding and free of charge. Here it is only checked whether your loan wishes generally match your information. If that is not the case, this will already be determined during this inquiry and another offer will be suggested.

If you meet all basic requirements, you will receive a full loan application for a concrete loan offer from MAXDA. All detailed information about the loan will then be recorded. The loan application thus also constitutes a binding request for a loan.

This is also where permission is given to view the Schufa data or to record the current loan in the Schufa file. Once you have signed to confirm the accuracy of the information provided, the loan application goes into review. The PostIdent procedure is used for identity verification. This is uncomplicated for you as an applicant. You simply need to go to the nearest post office branch and bring the loan application, the PostIdent coupon and a valid ID. 

If it is positively reviewed, the loan amount will be disbursed and the contractually agreed instalments will be collected thereafter. From the loan application to the disbursement of the loan amount usually only a few days pass, depending on the loan variant. The loan application is therefore the decisive step to approval of a loan.

Would you like to quickly calculate the terms of your desired loan? Just use the MAXDA loan calculator.