Installment loan without proof of salary.
Nowadays it is enough to make an installment purchase and various loan offers are regularly sent to you. Of course, there are always situations in life in which you need a loan. But do you actually get this even if you don’t have a fixed income?
Opportunities for an installment loan without proof of salary
In principle, proof of salary must always be presented for larger loan amounts. Exceptions are made if you do not have a Credit bureau entry and, for example, have real estate or funds that can be offered to the bank as security. These are then overwritten to the bank if the installment payment is not adhered to.
The bank also usually checks whether there are any further credit burdens, which is also decisive for the approval of a loan. An installment loan without proof of salary is therefore possible in exceptional cases. If a guarantor is found, a loan can also be granted. An installment loan without proof of salary is also possible for so-called small loans.
If the term is long, this can be paid back in small installments within six years. In this case, too, the creditworthiness is checked beforehand. A small loan can be taken out, for example, if there is not enough money for an indispensable household appliance or used car. It can also finance a long-awaited dream.
Many larger businesses work with credit institutions in order to also be able to offer customers installment purchases. If the monthly rates are in the lower, double-digit range, there is often no need to provide proof of salary. It is only checked at the house bank whether the person is creditworthy.
Small loan can be taken out
Small loans, with amounts between around 300 to 10,000 USD, are usually charged with high interest rates. An effective annual interest rate of up to 12 percent is not uncommon. The amount of interest is always dependent on the term. The longer it takes to pay the interest back, the higher the interest rate will be.
The duration of the term is set in the loan agreement, but in some cases it is possible to pay back the entire amount at once if the borrower’s financial situation improves. So you can avoid the additional costs in the long run. In any case, the banks’ loan offers should be compared. The house bank is usually not the best decision, especially online banks have attractive offers.