Anyone who thinks of a loan despite a low income, should check the conditions for an application in advance exactly. For banks not only value the regularity of disposable income, but also its amount. If the loan is denied on the first try, but still remain alternatives.
When banks forgive a loan despite low income
Even if the monthly income is low, it is not impossible to get credit from the house bank. But there are a few requirements to be met. As a potential borrower you should have no further obligations from outstanding loans, that is: the credit bureau information must not bring a negative entry to light. It should also be ensured that income is received indefinitely and regularly in the applicant’s account. If these conditions are fulfilled, the question of the amount of the loan remains. Because with low income can not build a house, so much should be clear in advance.
Rather, it requires a realistic assessment of which debt service, ie what monthly repayments and interest expenses, can be easily done. Banks take a close look and are not satisfied with their promise to tighten their belts in the future. The applicant should therefore not be overly optimistic about a low-income loan, because even if the above conditions are met, the claim can still be rejected.
The solution beyond banks and savings banks: private credit
But what to do if the banks cross each other, when urgently a loan is needed despite a low income? A currently increasingly popular solution to this dilemma is the private loan dar. This is not only easier to get, but in its terms often much cheaper than a loan from banks and savings banks. But personal credit is not a source of inexhaustible liquidity. As with the bank, the financial situation is also important here, even though the restrictions are more relaxed compared to credit institutions.
There are already several intermediaries of personal loans on the internet. Among the best known is the credit broker creditend. The basic concept is always the same: Borrowers are given to investors and vice versa. Some looking for a cheap loan, others looking for a lucrative investment opportunity.
Personal loans allow low-income loans, albeit not without hurdles: the financial situation must be stated, revenues are compared with the expenditure and the figures given identify the ratios available to investors in the valuation.
Above all, if you want to take the plunge into self-employment, attracting the attention of many investors can be aroused with a convincing business idea, even though the initial situation is by no means as stable as banks would like it to be due to low income.