bank loan

mille100piedi

How difficult is to get a bank loan from Bank of Ireland? I have been working for the same company for 7 years, I am homeowner and I don't have any debts

Atlantic Dawn

Depends how much you are looking for and what your current savings record is. If you are applying for a €20k loan and only have savings history of €1k a year you are very unlikely to get such a loan.

mille100piedi

I am asking for 3000 Euro and my saving are always much more then 3000 Euro a year

wally1990

I had no direct savings with BOi in 2014 and had a net income of €2,100 a month with small number of DD but through bad spending habits didn't save but just had an account in credit a lot but I applied for €1800 loan and got it no problem because i had a full time job and regular income with no big outgoings so comparing that your situation seems like you would have no problem

TiGeR KiNgS

mille100piedi wrote: »

I am asking for 3000 Euro and my saving are always much more then 3000 Euro a year

Why not just save ?

mille100piedi

TiGeR KiNgS wrote: »

Why not just save ?

because I really need the car now

Damiencm

mille100piedi wrote:

because I really need the car now

Pop into boi or aib and you wont have any problems. I think AIB are doing 3 hour approvals now in branch, Im sure you could aply online with both banks also. Have you considered the credit union? They tend to be cheaper but can take up to a couple of weeks these days

mille100piedi

sadly my request was not approved. My monthly wage is not very high because I am receiving an income protection plan, but since I rent a room in my house my monthly income is nearly 2000Euro a month and I don't have mortgage or dependents. I was asking only 3000Euro and I was refused??Anyway I will manage to buy the car I want but I was wondering that maybe the fact that I was refused is because I receive an income protection plan? and maybe the bank doesn't take a risk to give a loan to people with health issue?

Toots

When it comes to income protection and illness benefit etc, there's a huge grey area with loans. Speaking from personal experience with income protection, it's subject to regular reviews and can be stopped with practically no notice. Perhaps this is the reason behind their decision ie if the payments were suddenly stopped would it leave you in the lurch financially and mean you'd have difficulty repaying the loan? Do you know if your rental income is considered in your application? Part of the lending criteria is that the application is assessed according to an NDI scale (net disposable income) which means that in order for the loan to be approved the borrower has to have 'X' amount left over after their loan is paid each month. If you're on a low wage and your rental income is not taken into account then you probably didn't have enough disposable income left. Can you appeal it?

Peregrinus

mille100piedi wrote: »

I am asking for 3000 Euro and my saving are always much more then 3000 Euro a year

If your savings are always more than 3,000 euros a year, you must have much more than 3,000 euros in savings, surely? So why would you borrow 3,000 to buy the car?

mille100piedi

Toots wrote: »

When it comes to income protection and illness benefit etc, there's a huge grey area with loans. Speaking from personal experience with income protection, it's subject to regular reviews and can be stopped with practically no notice. Perhaps this is the reason behind their decision ie if the payments were suddenly stopped would it leave you in the lurch financially and mean you'd have difficulty repaying the loan? Do you know if your rental income is considered in your application? Part of the lending criteria is that the application is assessed according to an NDI scale (net disposable income) which means that in order for the loan to be approved the borrower has to have 'X' amount left over after their loan is paid each month. If you're on a low wage and your rental income is not taken into account then you probably didn't have enough disposable income left. Can you appeal it?

this make sense, in the on line form I wrote how much I earn every month from renting but the bank didn't ask further information. I received a letter for the appeal and I probably could appeal attaching the monthly invoices for the rent. I receive the income protection plan because I am still an employee, if they stop my income does this mean that my company will dismiss me?can they dismiss me if I am in a long term illness?and why my company would pay an insurance for income protection for the employees and then end their contract when they get sick?I don't know anybody else in my situation, so I don't have any idea

mille100piedi

Peregrinus wrote: »

If your savings are always more than 3,000 euros a year, you must have much more than 3,000 euros in savings, surely? So why would you borrow 3,000 to buy the car?

I am saving in order to get a very expensive genetic test in USA to understand which rare disorder I have and maybe to be able to stop the progression of my condition.
My old car broke down and my life would be much more difficult with no car. I was not planning to buy a new car now but bad things happen all the time

Toots

mille100piedi wrote: »

this make sense, in the on line form I wrote how much I earn every month from renting but the bank didn't ask further information. I received a letter for the appeal and I probably could appeal attaching the monthly invoices for the rent. I receive the income protection plan because I am still an employee, if they stop my income does this mean that my company will dismiss me?can they dismiss me if I am in a long term illness?and why my company would pay an insurance for income protection for the employees and then end their contract when they get sick?I don't know anybody else in my situation, so I don't have any idea

Well if they stop the income protection payment it's because their doctors are "saying" that you're fit for work, and will probably refer you back to your company's occupational health doctor. What happened to me was they kept sending me to different doctors, and all the doctors said I was unfit to work, so eventually they got one doctor who said I was fit to work, and they straight away stopped my payments. I got referred back to the company occupational health doctor, who got on to my consultants for reports. They advised her that I was not fit to work, she agreed, insurance still wouldn't pay out, so while I was still employed I wasn't getting paid a cent. I'm not really sure of what the legalities are regarding being dismissed or not.

mille100piedi

Toots wrote: »

Well if they stop the income protection payment it's because their doctors are "saying" that you're fit for work, and will probably refer you back to your company's occupational health doctor. What happened to me was they kept sending me to different doctors, and all the doctors said I was unfit to work, so eventually they got one doctor who said I was fit to work, and they straight away stopped my payments. I got referred back to the company occupational health doctor, who got on to my consultants for reports. They advised her that I was not fit to work, she agreed, insurance still wouldn't pay out, so while I was still employed I wasn't getting paid a cent. I'm not really sure of what the legalities are regarding being dismissed or not.

I am sorry for your experience, I guess it was a very stressful situation for you. It is already stressful being sick all the time. I receive once in a year a review form that I have to fill and send back to them, but they never called me to see their doctor. I really hope I will not have problems in the future because there are no doctors in Ireland that understand my condition and my company's occupational health doctor didn't believe there was nothing wrong with me

Toots

I hope it all works out for you, from what I've heard my experience wouldn't exactly be considered unusual in regards to those policies, which could explain why they declined the loan. If I were you I'd see if you get any joy with an appeal, the worst they can do is say no.

Peregrinus

mille100piedi wrote: »

I am saving in order to get a very expensive genetic test in USA to understand which rare disorder I have and maybe to be able to stop the progression of my condition.
My old car broke down and my life would be much more difficult with no car. I was not planning to buy a new car now but bad things happen all the time

This isn't really the place for financial advice (and still less for medical advice). But if you are saving money for your diagnostic procedure and you have to divert some income into servicing a car loan, that will reduce the rate at which you can add to your savings until the loan is repaid. Overall this is likely to cost you more, and therefore delay for longer the day when you reach your savings target, than simply dipping into your savings to buy a car, and continuing to save at your usual rate.

It's different if you already have enough saved to pay for the diagnostic process. In that case, it makes sense to spend your savings on the diagnosis, and borrow to buy the car.

mille100piedi

Peregrinus wrote: »

This isn't really the place for financial advice (and still less for medical advice). But if you are saving money for your diagnostic procedure and you have to divert some income into servicing a car loan, that will reduce the rate at which you can add to your savings until the loan is repaid. Overall this is likely to cost you more, and therefore delay for longer the day when you reach your savings target, than simply dipping into your savings to buy a car, and continuing to save at your usual rate.

It's different if you already have enough saved to pay for the diagnostic process. In that case, it makes sense to spend your savings on the diagnosis, and borrow to buy the car.

I will spend my saving in the diagnostic test very soon, I needed 3000 Euro for a car and I would gave them back to the bank during 2 years time. I have some saving also for the car I just didn't want to spend too much money at once. I don't think it is important for the Bank to know where I am going to spend my money today, but if I will be able to pay back them tomorrow. I am not looking for any medical advise because I really doubt that there are people in the forum that have more knowledge about my health issue then myself. I just replied to a member that was asking where I am going to spend my saving. I wasn't asking for financial advises, but I only wanted to understand why the bank refused my loan and Toots pointed to the fact that I am receiving an income protection plan and this might be a problem for the bank. And I think she is right because I can't see any other reasons honestly

mille100piedi

Peregrinus wrote: »

If your savings are always more than 3,000 euros a year, you must have much more than 3,000 euros in savings, surely? So why would you borrow 3,000 to buy the car?

I see now, you are the one the asked me where I am spending my saving. lol