Proof of income is one of the most important requirements that banks have to meet before they grant a loan. If there is no such, there can be several reasons: either the applicant is unemployed or he belongs to the group of self-employed and freelancers. These are in the ambiguous situation of having an income but not being able to prove it by means of wages and salaries. A loan without proof of wages is therefore in greater demand than one might initially assume.
An easy way: the dealer credit
Many dealers, especially in the electronics and furniture retail sectors, offer customers affordable financing. It is not uncommon for items to be offered with 0% financing, which means that this type of loan without proof of wages may be one of the cheapest available financing. The disadvantage of such a loan lies in the fact that it can only be used for a specific article and is not freely available.
The dealer credit offers the advantage that there are generally no wage or salary statements to be submitted here. The amount of the loan is determined by the price of the purchased goods, provided that no down payment has been made in advance. Credit is secured through the retention of title. This means that the purchased item remains the property of the retailer until it has been fully paid off. It should be noted, however, that some financing offers are processed together with cooperating banks. In some cases, it may be necessary to submit payslips. Ultimately, however, this depends more on the amount of the price.
Loan without proof of wages for larger financings: The personal loan
Especially self-employed and freelancers who are looking for a loan without proof of wages without a fixed income can find the best alternative to applying for a loan in a personal loan. Information on income is also necessary here, but this does not necessarily have to be proven with proof of wages or salaries. It is only important for the groups of people mentioned that they have been working for more than two years at the time of application.
Personal loans are a relatively new way of applying for a loan without proof of wages. However, there are several providers on the Internet that mediate the coveted credit from private individuals. One of the best known is the Spin Lender. Basically, the same information is required during registration as would be required, for example, when applying for an online loan. Above all, the income situation is particularly important here, since the creditworthiness indicators that are made available to investors are then calculated from the values entered.
A typical feature of personal loans is that the borrower is faced with several lenders. That may sound complicated at first, quickly turns out to be an advantage for the applicant, because this enables the loan to be made even faster without proof of wages. This is because investors can benefit from very effective risk diversification. In this way, many smaller investment amounts come together relatively quickly, which secure financing for the borrower’s project.
As a loan without proof of wages, the personal loan can provide invaluable services. This is not only due to the comparatively easy application, but also to the favorable conditions. Borrowers have the opportunity to largely determine the interest rate themselves. As far as possible means that a risk premium may also be due if the initial situation is rather unfavorable. Overall, however, the personal loan is cheaper than a normal installment loan from the bank.