Proof of credit of income
Proof of earnings Proof of income verifies the creditworthiness of credit transactions. For the granting of loans, a stable and secured salary is a basic requirement. Depending on the profession, different income proofs can be taken into account. For employees and employees, these are usually the payroll statements and, where applicable, the income tax certificates. The self-employed and the self-employed have a much harder time proving their salary.
Under certain conditions, leases may be presented as proof of income.
Proof of income for loans: what the bank wants
Each application for credit must be accompanied by a document on the salary and, where applicable, the fixed assets of the candidate, be it in the network or at a bank branch. Proof of income in connection with the lending serves two main purposes: it may be necessary to identify loan collateral with its support. And, more importantly, proof of income serves as evidence of the extent of economic resilience.
Credit assessments by various credit bureaus (Financial Credit Institutions and others) estimate the reliability with which a customer will meet its payment obligations. The proof of income, on the other hand, shows whether a borrower is economically able to service a loan of a certain size, with a certain maturity and a certain percentage of the annual charge. In this case proof is provided.
Based on both components of the creditworthiness check, the credit institutions present a single score value, which is compared with the guidelines of the award. If the bank’s internal score according to the credit guidelines, the loan customer gets the requested credit. In the opposite way, the credit is denied. A comprehensive, meaningful income statement together with the application for lending is therefore crucial for lending.
As part of the loan application process, you will be informed by credit institutions of the proof of income needed to obtain a loan. In the credit check, it is particularly important to ensure that no type of income is overlooked and that each type of income is documented. For most banks, salary statements for the past two or three years are sufficient. In addition, banks often require a copy of the continuous statements. Often it is the past four weeks of pregnancy.
In some cases, even the bank statements of the past calendar months are read. For other banks, the bank statement is completely omitted. On the other hand, credit institutions granting fully digital loans do not make any pay slips and only use bank statements in the course of a so-called Account view for credit checks. For this purpose, the creditor of the credit institution must provide the access data to his current account via a secure connection ….
However, in rare cases special merit certificates are required. Finally, the credit institutions can determine whether there is a seizure or assignment.
On the other hand, employment contracts that prove the existence of an employment relationship require very little. Credit institutions are asking retirees to submit the latest pension statements. Officials are invited to submit a copy of their most recent salary statements as part of a loan procedure. Loans without Financial Credit Institutions are granted only to employees or civil servants. By waiving a credit report, the sum of the pawnbareinkommen in this type of credit has a special position. Therefore, the income proof to high requirements.
As the only German financial institution, Sigma grants loans in Liechtenstein without Financial Credit Institutions. Irrespective of whether an application for credit is lodged with the principal bank or through a credit institution, the following documents are required: the latter two original salary statements. The original bank statement that matches the payroll statements or the receipt order. Copies of the (electronic) income tax card or copies of the payroll from last month of the previous year.
For the self-employed, borrowing is more expensive than for employees and employees. Therefore, credit institutions need more material to assess the resilience of the self-employed. Only a precise presentation of the financial position in history and future can limit the default risk. For this reason, credit institutions often require a whole stack of documents.
The credit institutions are particularly careful with the craft, as it is assumed that this professional group usually has a weaker creditworthiness. In addition, accounting documents must be submitted over a longer period of time. Company valuations, surplus accounts, annual accounts (balance sheets and GUVs), income tax assessments for a few years and / or current income tax returns, if applicable securities documents (securities holdings, capital insurance, savings, land, motor vehicles and the like).
Those who receive social benefits alone will not get bonds. However, some credit institutions will still allow a loan application if a solvent signatory is provided who has an income from self-employment or employment. In this case, a loan application will be submitted for a loan application. If several people claim a loan, each one must present a proof of income. From time to time applications for credit can not be granted because the applicants have failed to provide additional income.
The income does not have to come from independent or dependent employment alone. The receipt of child-care allowance can also play an important role in the granting of loans. Additional earned income can be proven by pay slips. Not only for the self-employed, credit protection plays a major role. In addition, they can make it easier for employees and retirees to take out loans.
Direct credit institutions grant loans largely automated and without great consideration for the particular circumstances of the respective borrower. Therefore, in addition to payroll accounting and signing of the loan agreement, no further securities are generally accepted. The willingness of the banks to take on further collateral to increase their creditworthiness is higher. As far as collateralization is concerned, two aspects are particularly important for banks: the asset must be easily identifiable and readily realizable in the event of a loan default.
The most important types of collateral that may be considered are securities portfolios, all types of savings, life insurance for foundations and private pensions, real estate and vehicles.