Low income makes it difficult to obtain a loan because the lender uses a household bill to check whether his customer can make the repayment as agreed. There is no precise definition of the low income, a meaningful definition for the assessment of earnings as low is the garnishment exemption limit.
Instant loans are loans that are paid out within two bank working days. Borrowers complete the application for an instant low-income loan on the Internet and fax it to the bank along with the requested vouchers. In addition, the Postident procedure is required when borrowing from a bank licensed in Germany if the applicant is not yet a customer of the financial institution. If the bank has a banking license from Luxembourg, faxing a copy of the identity card is sufficient for identity verification so that payment can be made within a day.
Borrowing despite low income
Whether an instant loan with low income can be successfully applied depends on the regulations of the individual financial institutions. In addition to a positive budget calculation for lending, some banks require that their customers have an income above the garnishment-free limit. Those who have a low income and want to apply for an instant loan pay attention to the minimum requirements of a bank for lending and apply to a credit institution whose published lending guidelines enable a loan to be granted.
The crediting of income and the household bill also differ depending on the bank. In the case of instant loans, many financial institutions use flat-rate values for the household bill due to the fast processing of the loan application, while other banks estimate the actual expenditure. In this case, trainees still living with their parents have realistic chances of receiving an instant low-income loan because the lender takes into account the fact that they hardly have to pay for their lifestyle.
Arrange small installments or find a guarantor
Loan applicants with extremely low incomes regularly fail on the household bill because the bank believes that they cannot pay the installments from the monthly earnings. If borrowers choose a long term for an instant loan with low income, the monthly repayment rates decrease, so that the banks consider the ability to repay them to be more likely. Another option for a successful loan application is joint borrowing with a co-applicant with a higher income or providing a loan guarantor.
In this case, the guarantor must not only have a sufficiently high income, but also be aware of the economic consequences of a guarantee. On the other hand, borrowing with incorrect information is not a suitable solution. Due to the short processing times, some financial institutions do not provide proof of income, which can only be checked superficially, for instant loans. Anyone who makes excessive information on monthly earnings in the loan application receives the instant loan with low income, but must face criminal proceedings if the credit cryptography is discovered. Such is easy to do if the borrower fails to repay the loan properly.