Credit application: what documents are required?
Whichever bank or agency you contact for your credit application, the documents required to study the file remain broadly the same. Preparing these documents in advance will allow you to speed up the decision-making process in most cases. What should be provided in which situation? Explanations.
Why do I need to provide documents?
The institution studying your request will need to be able to analyze your budget, and therefore establish a balance sheet of your current income and expenses. This analysis will be used to define a level of risk for the lender:
- If the risk is too high (risk of over-indebtedness, insufficient budget to assume a loan): the request will then be refused.
- If the risk is acceptable, the request will be accepted. Depending on the budget analysis, the risk will then be higher or lower, which will translate for the borrower into a more or less advantageous interest rate. The higher the risk, the higher the rate offered as well.
Proof of income
In all cases, the borrower will have to provide proof of his income. These will then depend on his situation:
- For the self-employed: latest tax assessment report.
- For employees: copy of the last three pay slips. If the applicant is a foreigner with type B or G residence permits, then the last 6 pay slips will be requested. In some cases, a bank account statement proving the payment of wages may also be requested.
- For annuitants (AVS / AI): copy of the annuity decision.
Evidence of expenditure
During the budget analysis, a lump sum is necessarily withdrawn from the budget for the credit feasibility calculation. The borrower will only have to justify:
- Its rent: a simple indication is sometimes enough, but a copy of the rent lease or mortgage contract may be requested for confirmation.
- Its LAMal premium: this is why banks always ask for a copy of the compulsory insurance policy.
For identification reasons, the borrower must also provide a copy of identity document and / or residence permit. In all cases, the establishment proposing the loan must formally identify the borrower, that is to say certify that the person making the request is indeed the person appearing on the identity document. To do this, there are two solutions:
- Either a direct identification: the borrower meets an adviser, or goes directly to the branch or the credit bank where he made his request.
- Or a yellow identification, to request from any postal office in Switzerland. This paper certifies that the person who went to the Post Office is the one on his ID.
Send the documents for your loan request
Generally, a copy of the documents will suffice, although the originals are sometimes requested. The copy must be of good quality, made with a scanner rather than a camera. It is generally possible to bring it by hand or send it both by e-mail and directly by post.
Preparing documents in advance generally saves time and avoids having the analysis blocked due to a lack of precise paper. Some agencies automate the process. Thus, at Best bank, the request process automatically indicates to borrowers the list of necessary documents according to their situation, by automatic return of email once the request is made. This generally saves time. In all cases, it is important to be well informed when requesting the precise list of documents required.