If loans with little income were a special case, millions of employees would probably have to forego their liquidity injection. More and more providers are ensuring that this does not happen.
Even with a small income, you are creditworthy if you speak to the right provider about your desired loan. We provide you with the necessary information. With whom you subsequently apply for your loan, you of course decide for yourself.
– Because, low-income loans are important for pensioners, precarious workers and very average fathers.
Low income loans – problem of adequate installment loans
Finding credit in a financial world that places increasing emphasis on secure lending is not easy. The linchpin for credit approval is proof of sufficient creditworthiness for lending. This includes the secure ability to actually pay agreed installments on time. Low-income loans depend on how high the actual income is.
Little income can be a more subjective perception. Nobody seems to make enough money for their work. The attachable portion of income is the most important factor for regular loans of adequate size. Many regular credit providers block if this proportion does not meet their regulations. But how high must the income for lending be?
The exact amount of income is determined by each bank itself in the internal loan terms. Few providers have the courage to disclose the numbers. Most regular credit providers can assume a minimum income based on the applicable seizure exemption limit. A general orientation for loans with little income is given by the garnishment table valid in each case plus about 100 USD on the individual allowance.
Installment loan is not equal to installment loan – sales promotion creates opportunities
The trade grants masses of small income loans. What is good is what promotes sales. According to this motto, those responsible for sales credits of the large trading companies set the bar low. A clean Credit Bureau and proof of a secure income that enables payment in installments. These two criteria are often the only hurdles that have to be overcome when purchasing installment loans.
In addition to the comparatively tolerant credit check, the providers often lure with interest-free financing of the purchase. Special offers are added on public holidays, for example when shopping for Christmas. Everyone is probably familiar with shopping for Christmas gifts today and paying for Easter. The disadvantage of these low income loans is that they are limited to buying from a provider.
Limit values of how small an income can be can only be guessed at. Media reports on the credit policies of large electronics chains show a wide range down. It was reported that trainees equipped themselves with extensive latest technology. Subsequently, the apprentice salary was not enough to pay the installments and parents stepped in.
Little income – get liquidity
Loans with little income are not necessarily only sought as installment loans. With a small salary, the household budget quickly skids. The overdraft facility granted by the house bank, which is the most common loan for low-income families, is quickly exhausted. A disposition over the disposition, the extraordinary overdraft as an alternative, would be an expensive pleasure.
Simply liquid quickly, that is what microcredits promise, even with a very small income. Borrowers do not have to wait long for their microcredit to be paid out. People who have their checking accounts at Agree Bank simply press the emergency call. Even without a certain minimum income in the checking account, a mini loan of 100 USD can be in real time on the account.
The microcredit at Litebank starts from 100 USD, a maximum of 1,000 USD can be applied for. The company limits loans with little income to new customers to a net loan of USD 500 with a maximum term of 30 days. The company specifies a minimum of 500 USD as the lowest income limit, depending on income security.
This means that a loan with the statutory pension, as compensation for the increased electricity bill or additional heating costs, is definitely realistic. Litebank offers existing customers up to a maximum of 90 days, divided into three payments. A borrower does not have to wait long for his liquidity injection. Existing customers can apply with the option “Payment within 30 minutes”.
Small income – problem solving without the bank
The credit brokerage portal Good Finance has an immaculate reputation in loan brokerage for “tricky” financing requests. Serious bank loans as well as loans from private to private can be applied for via the portal. In 2011, Good Finance was expressly praised by DIW Berlin (German Institute for Economic Research) for serious loans with little income.
The study found that many older borrowers use the portal. – Although the older generation is not one of the typical Internet users. From this it can be deduced that the loan with the small statutory pension comes less and less from the house bank. In order to still meet their credit needs, the seniors go to Good Finance for financing.
Very young borrowers at Good Finance were almost to be expected for the DIW study. This group again points to the increased need for loans with little income. Good Finance creates the prerequisites in that the income threshold for lending is 601 USD net income per month.