As a rule, banks and savings banks in our country only approve a loan application if the borrower can demonstrate not only a regular, but also a attachable income. This is attachable if it is over 1079.00 USD net per month for a single. If you are obliged to maintain, the garnishment allowance increases accordingly.
However, many consumers are below this allowance due to their part-time employment or their activity in the low-wage sector and therefore have a low income. Not good conditions for borrowing, since the borrower with the narrow income may find it difficult to repay the loan on time.
In order to be able to offer these consumers a loan despite everything, the banks have decided to offer a loan with low income. You can find out how this is structured and what options are available to the borrower here.
Whoever wants can
Even though banks and savings banks always view income as particularly important, there is still low-income credit. It is based on collateral other than income and can be raised in various ways. However, for you as a borrower with a low-income loan, such a loan means that you have to think carefully about the options for repayment and how you can arrange the borrowing. Therefore, do not be discouraged by a refusal to apply for a loan if this is based solely on your low income, but adjust your requirements and simply apply for the loan again.
The consumer loan
If you want to take out a low-income loan quickly and easily, go for a consumer loan. It is made available to you by many traders and is presented as a dedicated loan. The advantage of this loan is that you can easily use the loan to finance the consumer goods you want to buy. This means that you simply have to indicate your financing request to the dealer and he will make you an offer.
You do not need income above the garnishment-free allowance for the consumer credit. It is sufficient if you can prove income of at least 450 USD per month. It is not important from which sources this income comes. Only the Credit Bureau has to fit and you have to be able to identify yourself. Then the consumer credit, the collateral of which is based on the purchased items, can be put into practice.
The installment loan
However, if you need the money from the low-income loan at your free disposal, you will not achieve the desired success with a consumer loan. In such a case, it is advisable to take out a classic installment loan. It is at your free disposal and you can use the money individually.
The disadvantage, however, is that you can only get such a loan with a high income. Since you do not have this, you will have to find a loan partner for the installment loan, who will either appear as a second borrower or at least as a guarantor. On top of that, you have to expect that you will only be offered a small loan.
The same also applies to real estate loans or car loans. Without a second borrower or a very good guarantor, you won’t be able to use them as a low-income loan. Even if you can name additional material collateral. After all, you lack the money needed to pay the loan. You cannot trigger this with a valuable picture or an expensive coin.
The personal loan as a low-income loan
Some private donors offer a loan even when the income is very low. But be careful. Debt could be lurking at this point.
Since the loan also has to be repaid somehow on a private level, it is simply not possible without money. Therefore, never get involved in dubious offers, but always calculate in advance exactly which installment payments you can afford in your financial situation. Always keep in mind that you may have to repay the loan over several years. The financial burden of the loan is therefore quite long.