An income certificate is necessary to obtain a loan. It is an attachment to the loan application. In the case of non-bank loans, this is not an obligatory document.
When applying for a loan, you do not need to attach confirmation of your income. This particular type of loans is very popular, especially for those who cannot boast of stable income required for loans. Currently, 76% of borrowers simultaneously use a loan and a non-bank loan. 1 What is a loan with no income ?
On what basis is a non-bank loan with no income granted?
As loan companies operate on slightly different rules than banks, they can afford more flexibility in setting the terms for granting loans. They can’t afford to borrow money without checking the customer’s credibility. In assessing the repayment capacity of liabilities they incur, they do not act so meticulously.
In the loan application, they require the consumer to provide information on the income achieved, and the income certificate, which is known from banking procedures, is omitted. As a result, getting a loan without income becomes faster.
When considering non-income loans, the concept of income should be clarified, as many consumers have a meaningful understanding of this economic term. Income is considered to be any income after deducting the costs of obtaining it and after deducting mandatory contributions. It does not have to be the amount we earn. Income may also be the benefit we receive and from which we live. Many consumers equate income only with employment remuneration. Meanwhile, we also talk about income when their sources are:
- renting an apartment or other real estate,
- disability pension
- employment based on a contract, specific task or commission,
- social benefits,
- profits from taxed activities.
Loan companies accept various sources of income, they can also include transfers from the 500 plus government program as income. Income is a component for assessing borrowing capacity. In addition to these other factors are important, in particular:
- credit history , i.e. previously drawn loans with information on the progress of their repayment,
- amount of monthly liabilities, as it cannot exceed the achieved income.
People who get money for a living from sources other than full-time work, and at the same time meet the conditions of the lender, will receive loans without a standard income , as there are no rigid regulations.
Types of loans with no income
The non-bank offer includes loans for the unemployed . Persons without permanent employment can easily benefit from the standard offer of loan companies, also when:
- they receive remuneration for occasional work,
- they make a living from alimony,
- they collect receivables from the rental of real estate,
- are just starting work and are in the trial period,
- are students and receive a scholarship or grant from the family.
An unemployed person who has no income can count on non-bank companies offering loans to the unemployed in the form of:
- loans with a guarantee,
- loans secured by assets.
A traditional quick loan with no income in the form of payday loans is simply not realistic. Even if the applicant for the loan conceals the truth about the income in the application, he will probably be rejected for further verification. However, it should be remembered that a lack of income does not mean a lack of solutions. However, it should be taken into account that quick loans without income are unlikely to be possible, as the formalities for loans for the unemployed can be a bit more.
What are guaranteed loans for the unemployed?
A person without any income should be aware that a loan without income actually exists because the lender may find another way to reduce the risk of borrowing money.
This risk is limited by the guarantor. They can be personally indicated by the borrower, provided that they have income and meet other conditions necessary for a positive assessment of creditworthiness. Such a person will be able to financially help repay the liability. Takes over the burden of liability in the event that the borrower finds no employment and is unable to cover the debt. Before such a loan with no income is paid out, you will need to sign up for the purchaser.
What is a loan with no income?
If other solutions are not available, then there is a loan for an apartment without income, the rules of which are quite controversial. Real estate has long become a collateral for loans, especially when it comes to mortgages. However, this is a different type of loan.
The pledge of the flat consists in the fact that the lender becomes the owner of the property based on the loan agreement concluded by way of a notarial deed. As soon as the borrower repays the liability, he will regain full ownership title to the flat he had previously pledged. Such a loan against an apartment without income actually seems like a risky solution, but it can be helpful in getting out of debt .