As everyone can imagine, getting a low-income loan is not very easy. If you have hardly any money to live with, you will hardly have anything left to repay a loan. However, it is not impossible to get a loan, even if it will not be very high.
Creditworthiness is not only dependent on income
Many think that those who have a good income will automatically receive a loan. That’s not the case! Income alone is not enough to question creditworthiness. Even low-income earners can score points at banks and receive a loan. If, for example, the borrower owns a property or a life insurance policy with a high surrender value, he can score with his creditworthiness. Those who earn just under 1,200 USD, but do not have to pay rent, often have more advantages than someone who earns 2,000 USD and still has to pay the rent. In addition, guarantees can ensure that a loan can be taken out despite low income.
How can I apply for a loan despite a low income?
The path should lead to the house bank in order to have an extensive conversation there. The applicant should draw up a budget in advance. Income and expenses are noted there and counted against each other. This way you can see whether there is really any money left for monthly payments. In addition, the latest bank statements and the employment contract are requested. A clean credit bureau must be available. If you have too many negative entries there, you will not receive a loan despite low income.
Bank refuses credit – what to do?
In some cases, all collateral is not used to obtain a loan. The requirements are very high and not everyone can meet them. If all else fails, there are other options. On the one hand, private lenders can be found on the Internet on special platforms. However, these loans are offered at high interest rates, so you should be very careful here so that you don’t get into debt. Another way leads to your own family or friends. It is not uncommon for them to be asked about a small loan. This is free of interest. However, a loan contract should still be drawn up so that no disputes can arise later. A monthly rate can also be agreed, which does not make the financial situation worse.