Consumers today want not only a quick loan, but also a simple application. Because borrowing money without income should be possible for everyone who needs it, even if you have a variable income at the time of applying for a job, or you may receive a different income as a housewife. As a rule, only a few minutes pass between the application and a provisional loan commitment. The guarantor is entered in the guarantor’s felony, so that he can have difficulties if he himself wants to apply for a loan. Still no regular income, but a loan?
Loans without income – just a dream or reality?
Financing bottlenecks can occur again and again in the course of life and a loan appears in such cases as the optimal way. However, it is very difficult for people without regular cash receipts in their bank account, because the bank must ensure that they can repay the loan issued. A proof of income is therefore usually required and the circumstances of the applicant are carefully examined.
In the emergency situation of the consumers concerned, however, there are still some ways to take out a loan. Before paying out the loan, many banks want to know the financial situation of the applicant and avoid an increased credit risk. Key requirements are the creditworthiness and credit profile of the customer [internal link with credit requirements] that underlie the approval.
Regular income gives the lender collateral for a reliable payout. So there is hardly a service provider who spends a loan without income. A credit bureaufreie financing also requires proof of the solid financial situation of the client. As a result, the market for this particular problem is in sharp decline, as online credit intermediaries and providers of peer-to-peer loans are also linked to the relevant evidence.
As a rule, the three last-mentioned profit and loss statements and the corresponding statements of accounts are required for a loan. It is negligible to be paid by a house bank. The lender examines the current situation of the consumer during the investigation and can only focus on it. What exactly does “without income” mean?
There are several groups that may or may not be eligible for a non-income loan. Even people without income are not very poor and the target groups are not supplied by the unemployed. The self-employed, craftsmen and the self-employed often find it difficult to get loans because the payment is relatively irregular.
For some banks, hourly pay is also considered as fluctuating income. However, the sole education money is not conducive because many well-known lenders need a minimum income. Below 800 USD per month, even loans without own financing are difficult to realize. The number of sufferers indicates that an alternative to conventional income-supported financings is justified.
The application possibilities are not as small as some thought.
Thanks to thorough research, even borrowers with these financial needs are not left out, since many banks do not provide payroll for microcredits. In the event of the insolvency of the principal, the lender suffers less damage for smaller amounts.
There are only a few suppliers of this variety. According to Express Loan, the applicant must be at least creditworthy, however a minimum income is not required. Incidentally, larger sums are possible with banks due to alternative hedging such as guarantors. In the absence of proof of income, credit institutions require other collateral to minimize the risk.
This can be a tangible asset, such as a property, which can prove that banks have a certain economic viability. In the case of a loan without income, it is often only necessary to identify the borrower with the help of an identity card and the presentation of an EC or credit card number. The loan does not require a regular income because the consumer is not in debt.
If he can not procure the cash and the accrued interest after the deadline – usually 3 months – the pledged property is auctioned in public. The pawnbroker also does not report to the relevant commission. However, a mortgage loan is a good option for people without regular income to get transitional funding because it does not require a credit check.
The supply of non-income loans is low, which will give consumers a big challenge. Some banks can also pay for customers without permanent payment on the bank account. Lenders can waive proof of income up to an amount of USD 3,000. The name has its justification, since the loan amount is available to the client on request.
Only with actual demand the borrower uses the cash. In recent years, peer-to-peer loans, ie personal loans, have become a real market presence. Private investors have the advantage that the lender can explain their situation more precisely and the willingness of investors to take risks is often greater than with credit institutions.
However, only very few providers can submit a financing application on the platforms without proof of yield. In addition, the question arises as to how good an application can be if the lenders do not trust the credit and credit standing of the investor. In other countries, credit requirements are often much higher and successful completion is also possible through other collateralization.
But with foreign banks you should pay attention to dubious providers. It has been found that non-income loans are a real burden for people seeking a loan, but it can be managed. With the help of a thorough investigation, a few service providers can be found who refuse to prove the economic situation or ask for other securities.
Ultimately, it is up to each individual to determine if he can take on the burden of a loan.