It is nice and safe to be financially secure and to be able to afford everyday things. In Germany, however, the gap between rich and poor is widening. This is mainly due to the fact that wages do not go along with rising prices for many people.
In the end, this development means that incomes are becoming less and less. So it is becoming increasingly difficult for these people to make a living. If you still have family and children, this situation only tightens even more. You can hardly afford anything anymore, especially nothing that entails higher purchases, such as a car or a vacation trip with the whole family. But there is a remedy, because many banks and credit institutions grant their customers a loan despite little income. How this works is shown below.
A loan with little income is a pleasant business
Of course, there must be certain guarantees when applying for and checking the credit (credit check), otherwise the approval of the loan does not look good. Proof of income is not a good argument for a loan despite low income. On the other hand, investments in real estate or shares are a good argument for granting the loan. A general requirement is that there is no entry in the nationwide uniform Credit Bureau database, otherwise it will be difficult with the approval.
Another alternative can be a guarantor. A guarantor, for example a friend or a friend who can step in should the borrower have any payment difficulties, vouches for him, so to speak. This will also affect the terms of the loan, which are presented below.
Facts about a loan with little income
The maximum loan amount to be applied for with collateral or guarantors is around 100,000 USD. If you have very little security, a small loan of up to 5,000 USD is still possible. The duration of the loan, i.e. the duration of the installment repayments, is usually between 6 and 60 months. Another key factor is the interest rate that the bank sets. It is worth comparing the offers of the various banks well here.
The interest rates can vary and range between 4 and 14 percent. The loan amount, term and interest rate then also determine the amount of the monthly installment. The rate should only be set high enough to be able to pay it back safely. Possible short-term expenses should also be taken into account here.