Requirements of lenders operating in Madrid
The lenders with offices in Madrid, like the rest of the financial institutions in Spain, will put some conditions that they see necessary depending on the type of loan that we are going to request them. Although each company may impose the necessary requirements, these are the general conditions that we will have to meet to obtain a loan:
- Be of legal age, although some lenders will ask us to overcome the 21 or 25 years. Also, people over 75 years are not usually accepted by many companies.
- Reside in Spain permanently: we can demonstrate that we comply with this requirement by presenting a copy of our ID or NIE, in case of foreigners with a residence permit in Spain.
- Have an income: the remuneration that we receive must be sufficient to pay the credit, received regularly and be able to justify it with an official document.
- To be the holder of a current account: in it, the online loan entity will deposit the money, in addition to analyzing our financial profile to check our ability to repay the loan.
- Do not have outstanding debts: if we have a non-payment registered in a delinquency database, such as ASNEF or Badexcug, the banks will reject us as borrowers.
Although in the last point we said that we can not appear in a file of defaults, there are lenders that grant loans with ASNEF for people with debts registered in a delinquency list. However, for this our default will have to meet the following conditions:
- Do not exceed the limit set by the entity. This maximum amount that can reach our debt will depend on the risk policy of the entity. As a general rule, it is around 200 euros, although there are lenders that will accept clients with debts of up to 1,000 euros.
- Not have a financial origin. If our debt comes from the non-payment of the installments of a previous loan, the mortgage or the deferred payments of our credit cards. Defaults to service companies such as telephone, water or electricity will not prevent us from obtaining financing.
If we want to avoid resorting to private lenders in Madrid, which give us less confidence than large financial institutions, we will have to adjust to these requirements, in addition to the two conditions that our debt must meet if we appear in ASNEF. We can obtain a payday loan no credit check more easily, works like a charm.
How to detect if the lenders of Madrid are reliable
If we have decided to go to a lender in the capital of Spain, it will be convenient for us to make sure that it carries out its activity in accordance with the legislation on consumer loans. If this lender has a contact web page, we can perform several checks to verify that it is a legitimate lender:
- Check if you have a legal notice: in it, the lender would have to explain the details of its activity, as well as its data processing policy.
- Analyze your URL: for it to be a secure website, your address will have to start with “https: //” and be preceded by a green padlock and the phrase “It’s safe”.
- A legal lender will never ask us for money in advance. This practice is punishable by Spanish law and is only carried out by financial intermediaries since they charge their fees without assuring us that we are going to get any loans.
- Legal lenders do not advertise their services on classified ad pages, nor will they contact us through social networks or an instant messaging service such as WhatsApp.
- A lender can not get us out of ASNEF. The only ones that can erase our data from an unpaid file are the creditors of the debt, that is, the company that entered us on the list. If a lender in Madrid offers to eliminate our ASNEF data, we should be suspicious.
Another recommendation if we want to know about the legitimacy of a lender is to seek customer opinions. In the same way that when we look for a good restaurant we consult pages of experiences of diners, in the HelpMyCash.com we will be able to see the opinions of clients of all the thousands of personal loans that we analyze in our page.
The variety of alternative loans to lenders in Madrid
The private lenders in Madrid do not usually have products regulated by Spanish legislation, being able to impose the conditions they want, including certain abusive clauses. However, with online loans, we can contract, from anywhere in Spain, regulated products with certain fixed conditions, among which include:
- Online mini-credits: these financial products are specially designed to solve an unforeseen event that requires an urgent payment. If we do not have sufficient solvency, we can request up to 300 euros if we are new clients and 1,200 if we have already contracted a mini-credit with this company. The cost of these products is around 1.1% daily and usually, have a maximum period of 30 days. Its main characteristic is the simplicity and speed of concession, being able to obtain them in a matter of minutes.
- Quick credits: their conditions and speed are very similar to those of mini-credits. However, with these quick loans we can get up to 5,000 euros depending on the entity we go to. Your repayment term is more extended, so we can return the money in several monthly installments that can add up to 4 years. The average price of these products is around 6% per month.
- Personal loans: these loans are perfect for financing our larger projects, such as the purchase of a car or a reform in our home. With them, we can get from 1,000 to 60,000 euros for what we want. The average price of these products, according to the latest report from the Bank of Spain is 8.3% APR. We can return them in a maximum of ten years.
Depending on our financing needs and our profile, it will be more advisable to lean towards one type of loan or another. In any case, it will always be more advisable to go to a regulated entity than to a lender in Barcelona or Madrid that does not comply with national regulations.