Hardly anyone gets through life without borrowed money. How quickly do you find yourself in a position to have a large sum of money at short notice? Maybe a household appliance broke down or the car should be repaired urgently. Most of the time, the amount is missing to pay the costs for the purchase or repair immediately.
The amount of income
In addition to the customer’s creditworthiness, the main criterion for lending is the amount of his monthly incoming money. The banking institutions want to make sure that the customer can meet his regular obligations on time. An application for a low-income loan is carefully examined. The bank calculates in a simple way: for some reason, the debtor may no longer be able to meet his installment obligations.
Now the bank has the possibility to seize the wages or the salary. However, since the debtor must be left with a legally prescribed amount to support himself, this is the crux of the matter. If the bank customer receives a low-income loan, the bank may risk losing money.
What to do if you want a low-income loan?
Of course there is also the possibility for people with a lower cash receipt to borrow money. Offering collateral is the best alternative. You may have property or life insurance. This means that the bank can get its money back if the repayment does not work.
However, not everyone has real assets to offer. In this case, a guarantor can help. The bank then treats it as if it were the borrower. Of course, in the event of payment difficulties, this means that the bank will come to the guarantor. She would then like to have the loan repaid by him, with all the consequences, including the garnishment of wages.
Realism protects against the debt trap
One should be aware of the responsibility when applying for a loan. A loan with little income should really only be taken up in a small amount and with a realistic assessment of the rate options. It should also be borne in mind that the lower the monthly rate, the longer the term, the more expensive the total loan.
Comparing and checking are the most important factors
A loan with little income is usually associated with a higher interest burden. For this reason, comparisons of the various offers are recommended. There are numerous comparison options on the Internet. Perhaps the house bank is the first point of contact? This can often offer its regular customers offers that cannot be found on the Internet. A first conversation often helps to clarify and answer the most urgent questions.