Loan documents
Loan documents are all documents and other documents that a lender needs when submitting a loan application to assess the creditworthiness and creditworthiness of the future borrower .
General
Of the banks as the main creditor asks § 18 KWG a comprehensive credit assessment , allowing them to estimate future credit risk allows. The regulation is the result of the banking supervisory principle that loans are only granted after a comprehensive and careful examination of the borrower's counterparty default risk and then continuously monitored. However, this generally formulated provision does not contain any specific information as to which credit documents credit institutions have to request in individual cases. For a long time, there were detailed interpretative regulations of the banking supervisory authority regarding § 18 KWG, which the BaFin dispensed with in May 2005, so that today there are no longer any uniform regulations for loan documents.
The more plausible information and data the loan documents provide, the more accurately banks can classify their credit risk. Missing, incomplete or implausible information, on the other hand, increases the potential credit risk and therefore carries the risk of a loan being rejected. It must therefore also be in the interest of a loan applicant to inform the credit institution as comprehensively as possible about his personal and economic circumstances. This information problem represents an asymmetrical information situation for banks if they do not have the same information as their customers .
Other lenders ( insurance companies , debtors ) can also apply corresponding rules for their lending business .
species
The type and number of documents and evidence in banking depends on the customer group and, to some extent, on the type and amount of credit. In the customer group, a distinction must be made between "private customers" and "corporate customers": The loan documents include:
- for private clients ( individuals , retail banking ) signed self-disclosure , proof of income ( payroll ), expenses , assets , liabilities (and debt service thereof) liabilities, acquired (through guarantees ), income tax assessments , Schufa information services as well as necessary to open an account information, such as Residence , property regime , number of children , employer , beneficial owner .
- For corporate customers ( corporate finance ): excerpt from the commercial register , industry comparison , annual financial statements for the last 3 years ( balance sheet , profit and loss account with appendix and management report ) or business evaluations , financial planning , financing plan , cash flow statement , cash flow forecast and ratings from rating agencies ; In the case of self-employed persons without accounting obligations, the income statement including asset and debt status. It is controversial whether the annual financial statements of small or medium-sized corporations , which make use of the simplifications of Sections 267 , 276 and 288 HGB , meet the requirements of Section 18 KWG.
Where necessary, loan documents must be certified by tax advisors or auditors (statements of assets, annual financial statements).
As a rule, the higher the loan amount or the blank credit , the greater the scope and quality of the information . In particular in the commercial lending business, figures ( quarterly reports ) are also required during the year . If loan collateral is required, the loan documents must be supplemented with lending documents . This includes land map and land register , land purchase agreement , building description , calculation of the built-up space as well as the living and usable area , total cost statement , profitability calculation (if the building is not used by the owner). In the lending of home ownership a certified copy of the addition condominium declaration required.
Accordingly, the smallest loan documents will be required for overdraft facilities , the most extensive for investment loans , real estate financing or special financing .
Exceptions
Loan documents are not only from lending, but also during the repayment term to update permanently ( "current disclosure") by the borrower and submit. A credit institution can - but does not have to - refrain from this under Section 18 Sentence 2 KWG
- in the case of loans secured by a mortgage on residential property used by the borrower himself ,
- if the loan does not exceed the lending limit of 80% of the lending value of the pledged object within the meaning of Section 16 (1) and (2) PfandBG , or
- if the borrower makes the interest and repayments owed by him without disruption.
According to section 18 sentence 3 KWG, disclosure is not required for loans to
- foreign states of the European Economic Area and central banks , the federal government and the Deutsche Bundesbank ,
- multilateral development banks or international organizations , if they would receive an unsecured KSA risk weight of 0 percent or
- Regional governments or local authorities in another state of the European Economic Area, a state , a municipality , a municipal association , a legally dependent special fund of a state, a municipality or a municipal association or public sector bodies if they receive an unsecured KSA risk weight of 0 percent would.
Loan decision and loan agreement
On the analysis of the credit and collateral documents by the credit processing and / or credit analysis which builds credit decision on. In credit scoring (for private customers) and rating (for corporate customers), essential data from the loan documents and lending documents are condensed into a rating. If the credit decision is positive, the credit and security agreement adopts the essential data from the credit and lending documents. Loan documents thus have a far-reaching effect for the future. The loan agreement contains the possibility of a loan termination for good cause in the event that loan documents are not submitted in the context of disclosure of the economic situation or other documents relevant to the contract.
See also
Individual evidence
- ↑ BaFin dated May 9, 2005, letter to the Central Credit Committee on Section 18 KWG ( Memento of the original dated June 28, 2016 in the Internet Archive ) Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice.
- ↑ Harald Gerhards / Helmut Keller, Lexikon Baufinanzierung from A to Z , 1993, p. 332
- ↑ VÖB, guidelines for creating an assessment system according to § 18 KWG , October 2007, p. 20, FN 39
- ↑ Volker Lang / Paul Assies / Stefan Werner, Modernization of the Law of Obligations in Bank Practice , 2002, p. 161