But even with a low income, it can quickly come to a credit rejection. Even with a relatively low monthly income, bank customers want to take advantage of the low interest rates. Low-income people are, among other things, decisively supported by banks. Low-income loans not approved? Do you still have questions about credit despite your low income?
Small loans as a significant resource
Therefore, even people with a low income can not choose many things. For example, if we take a heater or a cleaning machine with us, these are everyday items that are absolutely necessary. Even luxurious goods such as vacations or electronics can not always afford. How should low-income people go about getting their hands on these things?
Among other things, low-income people are largely enforced by credit institutions. This is because, in practice, they are able to provide a low-income loan. A classic proof of income as a basic prerequisite for lending is only subordinate here. Finally, there are other securities that a borrower can offer.
However, in the case of a low-income loan, a guarantor may also be chosen as collateral. Garant is a person who has to step in for the borrower if he can no longer pay his repayment installments. Thus, the awarding of a low-income loan is almost guaranteed. In the case of such a loan, the financial institution may determine the range of the loan amount itself.
The repayment term is also variable and can be between one and 10 years. Low-earning loans are usually granted as installment loans, ie the borrower pays his payments each month.
Low-interest loans – difficult boundary conditions
Are you looking for low-income loans, but always listened to deaf ears? At your income level, neither your bank nor an online offer can be approved? They should fulfill your desire for a loan. You can read the corresponding offers in the associated credit rating comparison. It is clear that anyone who can prove that he or she can pay for it, will get a loan.
The political conditions decide more and more about who is creditworthy in Germany. The problem of obtaining a low-income loan is in many cases not due to one’s own failure. Bottlenecks in loans are a consequence of past reform processes and the euro crisis. Loans to financial institutions should only be granted if repayments are made with absolute certainty. Of course, none of the banks borrowed money earlier if they were not convinced that the borrower could repay them.
Today, the majority of computers decide who is creditworthy after the score. The calculation software rejects small loans when the partial invoice is insufficient or when too few attachable receipts can be proven. Retirees give illustrative case studies for problematic situations with regular loans. In Germany, the average pension is just over EUR 1000. Despite all goodwill, it is not possible for the company to determine a seizable proportion of the income from remaining pensions.
The current safeguard limit for individuals is EUR 1 079.99. Similarly, for people who are in the low pay range. It is also almost impossible for them to prove that they have a share of their income that can be seized. For regular loans during planning, the seller still has room. Another alternative way for low-income loans, such as a regular installment loan, is the solvent guarantor or competitor.
Lending to two parties is considered secure because the guarantor alone assumes the credit risk. It would also be conceivable to secure the loan with physical securities. Regrettably, low-income, low-wage investment is a major shortfall in capital expenditures. Now it can help to generate the desired credit. When lending, the conditions are low.
In many cases it is sufficient to prove a perfect Sufa and a secure income. The income level is subordinate. Low-income loans are often in demand because a higher amount can not be paid out of current income. Low-volume fast lending is not self-perpetuating despite low revenue. Vecso, for example, awards a small loan for an emergency with a net income of 500 EUR or more.
For first time applicants up to 500 EUR credit with a period of 30 days in question. For existing bank customers of Fondes Bank, it can again grow significantly. A software checks the loan request in real time and immediately transfers 100 EUR to the customer account. Credit decisions and the provision of money can not be made faster than in real time.
For small incomes not only normal bank loans are suitable. The credit has been built up for years by the private individual to the private person on the credit portals Smart (Link: www.smava.de) and Auxmoney. The DIW Berlin even praised the Smava portal 2011 as a serious credit option for people on low incomes. The credit is quite straightforward.
Sava is recommended for the low-income loan.
This means that access to capital can be faster and at lower interest rates.