Low earners are often faced with the question of whether an instant loan with little income can also be obtained. In theory, it should be because it is logical that someone with little income cannot save as much as someone who earns well. But the practice is different. Most banks only grant the applicant’s low-income instant loan to borrowers who can provide additional collateral. It is important that the income is attachable and the creditworthiness is otherwise in order. An instant loan with little income becomes difficult or sometimes impossible if loan seekers have bad credit or if the bank already has loans that were not paid properly.
No attachable income can be proven because applicants are unemployed or receive other social benefits that are not part of the attachable income, such as parental allowance or sick pay, it is only possible to obtain an immediate loan with a very good guarantee.
Anyone who earns well gets the instant credit
Today, it is common to realize consumer wishes with the help of loans. Creditworthy consumers find it easy to borrow anywhere. It will always be problematic when it comes to an instant loan with little income. As soon as customers do not fit into the prescribed grid, they fall out of the processing system so that manual post-processing has to be carried out. This is no longer an instant loan anyway, because nothing happens immediately. Installment loans are now standardized banking products. Therefore instant loans can be offered. Processing takes place automatically at the banks and the system approves inquiries for creditworthy customers. The instant loan will be processed within a few minutes.
Make a budget invoice yourself beforehand
If you have a low income and would like to apply for a loan, you can calculate for yourself whether the income is sufficient for a loan. The monthly expenses have to be deducted from the monthly income. The bottom line is the so-called freely disposable income. It has to be so high that the installment can be paid for. The basis for calculating the freely disposable income is the net income from dependent employment or a pension. Other income, which includes maintenance, child benefit, parental allowance or other wage replacement benefits, must not be added. Banks do not count this income because it cannot be attached.
Instant loan with little income only with a guarantee
If loan seekers have drawn up their own household accounts and as a result find that it is tight or not enough, they should first think about how they can additionally secure the instant loan. It is usually enough for the banks, when it comes to an instant loan with little income, that the loan applicant includes a suitable guarantor as additional security in the contract.
What a guarantor should know
The guarantee declarations are usually signed without the guarantors being aware of what they are signing. Typically, instant consumer credit is a joint and several guarantee. On the part of the banks, this guarantee is treated as a contingent obligation. For the guarantor, this means that he voluntarily limits his creditworthiness for the duration of the guarantee because the rate is counted in his budget. For example, if a guarantor only accepts the guarantee because the borrower is in the probationary period, an attempt should be made to set the time limit until the loan applicant has successfully passed the probationary period and can prove his permanent position to the bank. The trial period does not last longer than six months, so it is not necessary to provide a guarantee for more than 60 months or longer. If a guarantor wants to be released from the guarantee during the term of the loan for which he guarantees, most banks only agree if the guarantor swaps.