Reasons why we can't grant a consumer loan

2019 August 08

Reasons why we can't grant a consumer loan

Here are some simple reasons:

  1. Salary

Your minimum income to get a loan must be at least €350 per month (net salary).

If you earn less, unfortunately, we won't be able to grant you a consumer loan.

If you are an employee you must have received at least 4 wages in your current job. Individual contractors should have received an income for at least 6 months.

If you have changed jobs in less than 4 months, you will have to wait until the fourth salary (sixth for the individual contractors).

2. A monthly installment can not exceed 40% of monthly income

This is the most important crediting rule set by the Bank of Lithuania. To find out how much you can borrow, calculate how much is 40% of your monthly income. This is the maximum total monthly installment across all of your loans

Example:

Monthly salary - €1000

The maximum amount you can borrow is €400 per month.

Other liabilities:

Home loan - €100/month

Car leasing - €80/month

Smartphone leasing - €50/month

Recalculated maximum amount we can lend:

400-100-80-50 = €170/month

In this case, we will be able to lend €5,000 for a period of 38 months.

If you want to borrow more than 40% of your income:

You can do so with a co-borrower. In that case, income and the monthly liabilities of both of you will be assessed. Monthly liabilities still may not exceed 40% of both of your incomes.

Requirements for a co-borrower:

  • Must have a steady income,

  • Your both income should be at least €700 when added up,

  • A good credit score,

  • No late payments in the credit history,

  • A co-borrower has to have an employment status for at least 12 months; at least 4 wages received at the current job.

3. No overdue credit payments

We check information about your payment history in various databases. We cannot grant a consumer credit to someone who has overdue credit payments.

In this case, the overdue debt must be paid immediately. We will be able to issue your credit at least 1 month after your last delay.

4. Self-assess your income

Taking credit is a responsible step that needs thorough assessment of income and monthly expenses. We recommend that you calculate your usual expenses like food, utilities, leisure, and assess whether your monthly income will be sufficient to cover the additional amount spent on credit.

We also advise you to answer the following questions before making your final decision:

  • How much will a loan cost me per month?

  • How much can I afford to pay monthly after deducting all necessary expenses?

  • Will this payment have an impact on the quality of my daily life?

  • Can my circumstances change?

  • If I suddenly lose my job, will I find a way to cover my installments?

If after honestly answering these questions, you decide that a consumer credit is the right choice, fill out the application here:

www.manopaskola.lt


 

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