I have an unsecured loan at a bank with no late payments. The bank is extending the loan each year as we agreed. The bank has asked for a new credit application and 2006 tax documents. Do I have to provide these documents? If I don't, are they going to call in the loan? Remember, the loan is unsecured and my credit is excellent.
The bank has a responsibility to make safe and sound loans. From your description the loan is maturing each year and they are technically extending a new loan for you, and to substantiate the quality of the borrower, these documents and others are often necessary.
Commonly an application, credit report, tax return and personal financial statement are needed. The bank would procure the credit report, but the other items are submitted from the borrower.
Gone are the days when the borrower's good word justified the loan. The lenders mantra is "document, document, document." Don't take it personally as a negative.
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The bank has a responsibility to make safe and sound loans. From your description the loan is maturing each year and they are technically extending a new loan for you, and to substantiate the quality of the borrower, these documents and others are often necessary. 