Individuals, with an irregular income or a negative private credit entry, repeatedly encounter rejection by banks and lenders when making a credit request. Nevertheless, it is possible to get a loan even as a borrower without proof of salary.
The approach of the banks
Financial institutions grant a loan only against collateral. These include a current salary statement and a positive information from private credit on the proper repayment of previous loans. In addition, monthly income must exceed the legal limit of attachment of 1000 euros. Minijobber, freelancers with irregular income, unemployed, Hartz IV recipients and housewives are thus not among the preferred borrowers of banks. Once you have not repaid the installments of a loan properly, then you fall with a negative private creditauskunft from the grid of banks.
Opportunities for a loan without salary
If you need a loan between 3000 and 5000 euros, then you can switch to a direct bank. Direct banks offer credit online without proof of salary. Borrowers should compare the individual offers, as the interest rates vary considerably. Direct banks include Deutsche Kreditbank, Netbank, ING-DIBA or Postbank or Cortal Consors. The interest rates vary between 7.5 percent to 12.30 percent and are thus well above the average interest rate for a conventional installment loan. Monthly charges are not calculated. The terms for the loan are between 36 and 48 months. A direct banking loan is also referred to as a discrete loan. Neither the house bank nor the private credit learn about it. The loan amount is for free use.
Credit with a guarantor
Under certain conditions, a loan without proof of salary can also be applied for at the house bank. One possibility is a guarantor. A guarantor may be a family member, relative, or acquaintance. The guarantor must prove a permanent employment relationship through a current payslip and must not have a negative private credit entry. The guarantor is fully liable for the borrower.
Credit with collateral
As collateral, the bank recognizes a car or a property. For a car, the amount of the loan always equals the surrender value of the vehicle. The bank keeps the car letter until repayment of the loan amount. Real estate is suitable as collateral for short-term and long-term loans. A property is valued by the banks according to market value. Of this, 10-15 percent security deposit will be deducted. The remaining sum determines the mortgage lending value. The loan amount is 40-60 percent of the mortgage lending value. For the credit without proof of salary, a mortgage is entered on the property. As collateral for a loan without proof of salary, you can lend a temporary loan to a capital-forming life insurance policy, a stock portfolio, a long-term savings contract or a pension policy. The policyholder signs a declaration of assignment. The surrender value of the respective financial product serves as collateral.
Solutions for self-employed and freelancers
The monthly income of freelancers and the self-employed is subject to strong monthly fluctuations. In order to get a loan without proof of salary, they must disclose their earning potential. Banks require insight into income tax assessments and business evaluations. If there is a trend towards an increase in income, freelancers and the self-employed receive a loan from the house bank.
Other loan options
With a private loan from the circle of acquaintances, a credit without salary is always cheaper than a loan from banks. It is interest-free and can be repaid flexibly. The credit options should be set in writing. For a short-term loan, you can pledge private property at the pawnshop. The repayment period for the loan amount is three to six months. Unreleased items will be auctioned by the Pfandleihaus. The profit, minus the loan amount and fees, will be transferred to the original owner. A loan without a salary statement is also called microcredit or housewife credit. The loan amounts are possible from 500 Euro to 5000 Euro. If a spouse is available as a guarantor or if a second borrower is named as collateral, then the amount of the loan can increase up to € 50,000. The interest on a housewife loan is between three and ten percent.
A loan without proof of salary is always granted when sufficient security covers the repayment of the loan amount. Loans without proof of income are characterized by a lower loan amount than conventional installment loans and higher interest rates.