According to section 4 of law No. 2019/021 of 24 December 2019 to lay down some rules governing credit activities in the banking and Micro-Finance sectors in Cameroon, all natural persons applying for a loan shall be required to provide to the credit provider, information required to assess their repayment capacity.
For individual borrowers, debt capacity represents the maximum volume of credit they can sustainably manage. It is meticulously assessed against their income, essential living expenses, and outstanding financial obligations to guarantee seamless loan repayment without triggering financial distress.
Any natural person applying for a loan shall provide to the credit institution in Cameroon details of his/her financial position, in particular:
Monthly payslip(s), where he/she is an employee, and that of the spouse where applicable;
Information relating to any other income from investments (rents or financial income);
Where applicable, copyright, royalties, alimony received, disability pensions;
Declaration of assets;
Monthly repayment instalments of current loans (mortgage, car loan, consumer credit, etc.);
Rent amount, including rental charges if a tenant;
Building maintenance expenses and property tax, if a house owner;
The amount of any support and other compensatory benefits payable;
Withholdings on wages and other deductions following a conviction;
The existence of revolving credits; etc.
The credit institution may request any other document likely to inform its decision.