Disbursement requirements are Conditions that apply to the payout of a credit must be fulfilled. The bank may already approve the loan even if not all conditions have been met. The commitment is then subject to the fulfilled disbursement conditions. This saves a lot of time, as the customer can already be sure that the financing is in place when all conditions have been met. The loan is not disbursed until all conditions have been met. If the conditions are not met, the lender may withdraw from the contract. This process can be very irritating to customers, and the question arises as to why a signed credit agreement rejected by the bank is rejected.
Why are there requirements uir credit disbursement?
What you can learn here
The disbursement requirements serve to, Minimize the risks for the bank. For example, the bank may require that the borrower provide a term life insurance to ensure that the loan installments continue to be paid even in the event of death. Also the specification of the creditworthiness and the Payroll serve to ensure that the borrower is able to pay the loan installments.
Disbursement requirements for installment loans
- Loan amount: from 1.000 - 120.000 Euro loan amount
- Term: 12- 120 months
For the smaller installment loans are usually standard transactions. Since these loans are usually provided for free disposal, few verifications must also be made. However, personal data (identity documents) must be checked for each transaction with the bank.
In addition, evidence must be provided for all information provided for the conclusion of the loan. If you have declared monthly income, such as salary or benefits from the office, you must usually provide evidence of this in the form of statements or certificates.
These are the requirements of the installment loan:
- legal age
- German account
- Minimum income: 1300 euros
- positive Schufa information
- Freely disposable income sufficient for payment in installments
What are the disbursement requirements for real estate loans?
- Loan amount: from 50,000 euros loan amount
- Duration: 5- 30 years
The following disbursement requirements generally apply to real estate loans:
- Object documents
- Security in the form of a first-ranking land charge
- legal age
- German account
- Minimum income: 1300 euros
- Positive Schufa information
- Freely disposable income sufficient for payment in installments
The bank usually checks very carefully whether all the requirements have been met before disbursing the loan. This is particularly important so that the bank can ensure that the loan can be repaid.
What are the disbursement requirements for small loans?
- Loan amount: from 50 - 200 euros loan amount
- Duration: 1- 3 months
Very small mini-loans up to about 200 euros will be Small loan is the name given to this type of loan. Due to the low loan amount, the requirements for obtaining this loan are also comparatively low. An income of 500 euros is sufficient to obtain the 200-euro small loan.
These are the requirements of the small loan:
- legal age
- German account
- Minimum income: 500 euros
A good credit rating without negative credit bureau Entries as well as a fixed employment contract, on the other hand, are not absolutely necessary.
Small loan: borrow 200 euros for under 2 euros!
What other payout requirements are there?
It may also be that certain requirements must be met for each partial disbursement, for example, a minimum amount or a completed progress bill. Alternatively, evidence may have to be provided for the disbursement amounts. There may also be requirements, such as reporting obligations or certain behaviors that must be adhered to.
Conclusion
The disbursement requirements serve to, Minimize the risks for the bank. They are therefore intended to ensure that no loan defaults. The more secure the bank considers this to be, the lower the interest surcharge on the loan. Whereas the requirements for small loans are very low, for a construction financing more requirements to be met. In the case of a real estate loan, the individual partial disbursements by construction phase are also subject to their own requirements. Often, a completed invoice from the construction contractor is required for this. Or, other proofs must be submitted for the disbursement amounts. There are also conceivable requirements, such as reporting obligations or certain behaviors that must be adhered to.
Continue reading:
Replacement value: The most important things explained in under 4 minutes Acceptance obligation explained in 3 minutes 
Warning on credit: last article you need to read 
What is depreciation and what are the methods? Acquisition costs: These facts borrowers should know now Down payment: How much equity is required? Employer loans: The best tips for employees Payout: Everything you need to know about value dates 
Annual performance: everything you need to know (credit encyclopedia) Mileage contract: Everything you need to know (Credit glossary) Credit rating: Everything you need to know (Credit glossary) Mileage car: gasoline, diesel, electric & motorcycle
