A loan applicant is a person who applies to a bank or non-banking company for a loan. In order to obtain a loan, the basic conditions set out in the law must be met, as well as other specific requirements set by the particular provider. If more than one person applies for a loan together, each of them must meet the conditions for the loan.
The loan applicant must be of legal age
The basic prerequisites for a successful loan application include legal capacity and majority. The applicant must be at least 18 years of age. Lenders usually also set a maximum age limit for repayment. In the case of mortgages, this is most often the age of 65. Another condition for Czech citizens and foreigners is a permanent address in the Czech Republic. In addition, foreigners must have established permanent residence in the Czech Republic.
By law, banks and non-banking companies must responsibly assess the so-called creditworthiness of a loan applicant. For this reason, it is necessary to have a regular and sufficiently high income. Lenders also look at various registers (see the Banking and Non-Banking Customer Information Register, SOLUS register). Applicants who are, for example, in foreclosure or insolvency or who owe money to the tax office, health insurance companies or the social security administration will not be granted a loan. Applicants who are on probation or on notice will also not be granted a loan.