Factors taken into account by credit institutions:
1 - Fixed and regular income
To obtain a loan, you must be able to present fixed and regular income. Stability is an essential criterion for banks. A permanent contract or a job in the public service are assets. For the self-employed, business leaders and the liberal professions, seniority will be taken into account. Fixed-term contracts, temporary contracts or internships are generally not taken into consideration.
2- Sufficient rest to live
The remainder to live represents what remains each month to a household fixed charges and deducted monthly credit payments (bills, taxes, transport…). Each bank can apply its own recipe. However, we can start from the following method of calculation Remaining to live = total resources (salaries, pensions, 70% of property income)-total fixed charges (rent, taxes, alimony)-total credits. The remainder to live is highly regarded by credit organizations. To give an idea, the minimum living allowance for a single person is €750, €900 for a couple without children, to which is added €150 per child.
3- Sufficient rest to live
The debt ratio is the ratio between net household income and total monthly loan payments. It is calculated as follows: Debt rate = (Total monthly payments X 100) / net salary Example for a person with a net salary of €1500 and €300 of monthly loan: (300×100)/1500=20% In France, credit institutions consider 33% the maximum debt ratio . In this example, the total monthly loan payments must not exceed €500/month. Sometimes, the granted debt ratio can be higher than 35%, everything depends on the rest to live.
4 - A low debt ratio
To obtain a loan, you must be able to present fixed and regular income. Stability is an essential criterion for banks. A permanent contract or a job in the public service are assets. For the self-employed, business leaders and the liberal professions, seniority will be taken into account. Fixed-term contracts, temporary contracts or internships are generally not taken into consideration.
6- Sufficient rest to live
The remainder to live represents what remains each month to a household fixed charges and deducted monthly credit payments (bills, taxes, transport…). Each bank can apply its own recipe. However, we can start from the following method of calculation Remaining to live = total resources (salaries, pensions, 70% of property income)-total fixed charges (rent, taxes, alimony)-total credits. The remainder to live is highly regarded by credit organizations. To give an idea, the minimum living allowance for a single person is €750, €900 for a couple without children, to which is added €150 per child.