In Germany, more and more people tend to take out a loan. Most credit customers want to use the loan amount to bridge a short-term financial bottleneck. Many credit customers also decide to take out a loan in order to be able to make an expensive purchase (for example, a trip, buying a car or building a home). Many credit customers also use the loan amount to finance paid training. A loan without proof of income is relatively difficult in Germany, but not impossible.
Requirements for taking out the loan without proof of wages
As a rule, credit companies require various guarantees before the loan is granted without proof of wages in order to keep the risk of default low. For most credit companies, it is a basic requirement to have a regular income and to be able to prove it.
In principle, there are also credit companies that grant same day loans to credit customers with a negative credit record or without a regular income. The positive credit decision of the loan without proof of income / credit without proof of salary then usually presupposes that a guarantor is included in the loan contract or that the borrower can prove other security (for example credit on a savings book or property ownership).
Additional requirements for a loan without proof of wages must be met:
- The applicant must be at least 18 years old
- has a permanent residence in Germany
- has a German bank account
The Loan Without Proof Of Pay – The Possibilities
In order to get money quickly and easily, you can use the overdraft facility of your checking account as a loan without proof of income. The overdraft facility as a credit without proof of income is usually set individually by banks when opening an account. The amount of the possible disposition depends on the income situation. In most cases, long-standing bank customers receive a overdraft facility as a loan without proof of income up to a maximum of three monthly salaries. If credit customers no longer earn monthly income from gainful employment, the overdraft facility can still be used as a loan without proof of salary, which the bank offered before unemployment. This happens when long-term and reliable bank customers are concerned, with whom banks only assume short-term financial problems.
The interest on the overdraft facility as a loan without proof of salary is between 7.5 and 15%, depending on the respective financial institution. Overdraft facilities do not have to be repaid, but are instead offset against future cash receipts.
The foreign loan
As a German credit customer with poor creditworthiness or without regular income, you have the chance to obtain a loan without proof of income from a foreign lender.
Nevertheless, the granting of a foreign loan as a loan without proof of salary is subject to strict criteria. For example, trainees, students and the self-employed cannot receive a loan abroad without proof of income. Financial collateral must also be proven. If a regular monthly income is missing, individual agreements can be made and other financial guarantees can be proven. However, these are always individual decisions of the lender.
It is important to know that foreign banks only grant loans with very high interest rates, currently 11%. This is due to the high risk of default for the bank or the lack of alternatives for potential credit customers.
The small loan
The granting of a small loan between 500 and 5,000 dollars is usually tied to less stringent criteria than the granting of a larger loan. In this way, credit customers without proof of income can often take out a small loan. A small loan is particularly suitable for bridging a short-term financial bottleneck that has arisen due to unforeseeable additional expenses (for example repairing the car or buying a new electrical device). The non-earmarked small loans are associated with quick credit decisions and low interest and repayment rates with reputable credit providers. Credit customers who decide to take out a small loan therefore do not take any great risks and can plan the repayment as well as possible in advance.
Pledge loans can be taken out particularly quickly and unbureaucratically. Interested parties can bring collateral (e.g. smartphones, computers and even cars) to a pawnshop and then have the current value of the item paid out as a loan. If the borrower has higher liquidity in the future, the objects can be triggered again. In order to be able to take out a pledge loan, borrowers do not have to provide any security, are only 18 years old, live in Germany and can present a valid identification document.
Credit without proof of income and without credit record – really serious?
Basically, it is very difficult in Germany to take out a loan if no regular income can be proven. With the few credit companies that offer loans without proof of income, credit customers usually have to pay above-average interest rates. This is because the banks want to compensate for their higher default risk. A loan without proof of income can in principle be taken out quickly and without red tape. Applying for a loan without proof of income has no influence on the credit record rating.
Unfortunately, there are still numerous dubious providers in the credit industry. Before you take out a loan without proof of income, you should therefore compare as many offers as possible and make sure that you are dealing with a reputable company. Evaluation portals and testimonials from previous customers on the Internet can be particularly helpful for you here. Reputable companies are also good and can be reached via different communication channels, the imprint can be found on the homepage.