Don’t have regular earnings and would you like to apply for a loan?
The bank is most likely to come across. Indeed, the law imposes an obligation on all lenders to examine the client’s ability to repay. This includes regular earnings. Therefore, in the bank, each borrower must submit a monthly income statement from the employer. This is a problem for many. However, there are offers where the applicant does not necessarily have to prove his income. These are so-called loans without proof of income. Are you interested in what they are, who they are intended for and why you find them mainly in non-banking institutions?
Caroline was kicked out of work during the probationary period, and the account reserve became dangerously thin after several weeks of unsuccessful job search. One day, her house was stuck with her that she was already behind the rent for two months. She decided to deal with her financial distress with a small loan that would keep her under the roof before getting back in and starting earning. She was asked to submit a monthly income statement to the bank. When she said she had no fixed income for the time being, her request was immediately rejected. Borrowing from a bank without earning a living is equal to climbing Mount Everest for an ordinary mortal. Therefore, after a brief consideration, Carolina turned to a non-banking institution that offered her a loan without proof of income.
As part of the financial market supervision, the CNB identified the most frequent misdemeanor in 2017 in assessing creditworthiness.
The requisite aspect that the lending institution must consider is the applicant’s income. Indeed, it reflects logically on its creditworthiness, or its ability to repay the loan on time, without repaying excessively its livelihoods. Many non-banking institutions offer so-called unsubsidized loans, where applicants only need to fill in their monthly earnings and estimated expenses in the online form. Thus, companies theoretically obtain information about the applicant’s income, but do not take into account the subsistence minimum, other dependents or other obligations and provide non-bank credit to people without sufficient creditworthiness.
On the part of the institution, such a loan represents a risk, so usually a loan with no proof of income is a smaller amount with a shorter maturity, but offers for hundreds of thousands of money. The risk is offset by high interest, APR, fees and penalties. Solid banks will not allow such insecure investment.
Loans without proof of income
Loans without proof of income are also offered by some banks. You will not necessarily have to submit an extract from your employer. However, you will need to allow the bank to access the internet banking, where the institution will already verify your receipts and expenses on a transaction basis.
Because Caroline had an expensive rent, she decided for a relatively high loan without proof of income. No one asked her whether she was employed, just filled in the online form that she was receiving state unemployment benefits every month, and she had her money in 15 minutes. She paid the rent satisfied and continued her job search. Although she was lucky and found work, she had to commute to it and traveled with the old car more expensive. She failed to pay the monthly installment from the first payout and immediately started to pop up a whistle. Although the loan was not somewhat dizzy, but with exorbitant interest and APR, the situation began to deteriorate rapidly. Her expenses suddenly exceeded her income, and Carolina fell into a debt trap.
Students, persons on parental leave, pensioners, etc., will also receive a loan without proof of income. holidays. Not to mention single parents. The non-bank institution can calmly approve the maternity benefit of the mothers on the basis of the above earnings.
Fresh moms and dads often find “authentic” comments on favorable loans without proof of income. These are fake posts published by a company employee.
Non-bank institutions are not afraid to offer people rates sometimes comparable to usury. Do not jump to the first interesting offer, it is likely that there is a catch. Extremely small monthly fees are offset by long maturities. Short maturities are offset by high interest rates. Always base your loans on transparent behavior. Let’s figure out exactly how much you will overpay, how much you spend on fees, and how penalties work.
Do you know the company you are dealing with? Do you know what reviews I have? What is its Code of Conduct?
It is easy to arrange a loan, but choosing the right one is not a walk through the rose garden. Before deciding which one is right for you, compare the online solid offers and try the experts.
Non-bank institutions seek people with financial difficulties.
Do not be tempted by them and consider a different way to get money. Refinancing or consolidating liabilities can reduce installment costs by up to 50%. Try brigades, cashback portals (a part of your spending will be returned to you, eg Full Wallet), roommate, sale or pledge of extra equipment, delivery of people and food. You can also rent your car (eg HoppyGo).
The life and especially the financial life of the student is unstable. Only a very small percentage of them have a real financial reserve, and often live in a way that acts as a magnet for money problems. For example, buying a car from the fifth hand, living in a cheap apartment with semi-shattered appliances, irresponsible roommates breaking the keys in the castle, neighbors with a penchant for strange things and much more. The problem may arise mainly when they do not pass the exam and have to extend their studies. Charges for renewal will be calculated by the schools to a few tens of thousands of crowns and someone will not pull such a sum from day to day. What’s more, it’s a scorpion for many students with regular income, so they start to consider a loan from a non-bank institution.
Most schools are willing to make payments with the students or even cancel the part of the extension fee. Write your study assistant and ask her for help.
One of the most frequently cited reasons for a loan is health spending. These relate mainly to older generations who have a single income as a single income. However, with a small monthly contribution, they usually barely come out of what is left to give to their grandchildren. It is therefore not unusual for them to get into financial distress at the moment when an unexpected expense falls over them.
However, an increase in rent or a relative’s debt may also lead to the conclusion of a disadvantageous loan. The number of seniors in the debt trap is growing year by year, and last year there were eighty-eight thousand in execution. Most of them are non-bank institutions or so-called “junkies.” Scammers who force seniors to sign contracts with mental and physical pressure. In an emergency, pensioners should not be afraid to apply for social benefits. Discounts are also worthwhile, and even some energy suppliers offer lower rates for seniors.