An income-free loan may seem pointless at first, after all, if you do not earn, why would you take out a loan? It turns out that there can be many reasons, but the question remains – are there loans that will be granted to people without income?
Why take loans without income?
There are many reasons why someone may want to take out a loan, even though they have no income:
– She lost her job and has no livelihood.
– I want to help a loved one.
– I need money for medicine.
– May have an income, but unacceptable to some lenders.
Even if a person finds a job, it will take a long time to get paid. However, this does not change the fact that he needs money as soon as possible. Preferably right away. In this situation, loans without income come to the rescue, but you should first ask yourself a question.
Do loans with no income exist?
It should be noted that the loan market is very extensive and the number of offers on it is constantly growing. Finding a company that offers loans without income may not be a simple task, but it is also not impossible.
Today, many companies offer loans without certification that means you don’t have to document your income to get the loan you are applying for. Despite this, you receive money in a dozen or so minutes from a successful application. It’s a great solution for people who don’t have a job and need a cash injection.
If we are talking about loans without income, then we must also address the security of such benefits. Some people may think that the lender is taking too much risk.
How do lenders providing income-free loans secure their business?
There are really plenty of possibilities. It is worth noting that people looking for loans without income often have some income, but it is not based on an employment contract. And this, unfortunately, eliminates the possibility of incurring many obligations. Such persons may receive regular cash from:
– Various benefits
– Employment / commission contracts
– Lease agreements
Thanks to the introduction of the constitution for business, you don’t even need to run a business today to have a low income. However, some lenders require an employment contract.
Checking financial liquidity by lenders
Lenders also have other ways to check financial liquidity for those interested in the loan. Examples of the most common activities are to show them regular bills or an account statement where you get regular payments.
Another way is to confirm the possession of valuable movables, e.g. gold jewelry, a car, valuable machinery. Also, possession of real estate against collateral is sufficient.
Non-bank companies that offer loans without income simply have different ways to check their liquidity. Another example is the use of a modern application such as an installer, thanks to which the lender is able to clearly define the financial situation of the person applying for a loan.
Another alternative is to take out a contract with the guarantor, we have already discussed this topic on our blog.
Under what conditions are loans granted without an income?
Finally, it is worth answering an important question – are loans without income granted on worse terms than those where income is reliably checked? And yes and no – a lot depends on which lender’s services you decide to use. On the one hand, loans with no income are a higher risk for the lender, which means that they can earn higher interest rates. On the other hand, however, these differences will not be felt.
The most important aspect is being the right age. Young people often have restrictions, so if you are young, check the minimum age of the borrower at the company where you want to take out the loan. Often, restrictions are up to the age of 21-22, however, there are cases where even older people have a problem with taking out a loan. These are the most important comments, of course it is important to have a bank account, phone, but these are the things we wrote about in the article about verifying the borrower’s identity.