It is often very difficult for people who do not have a regular salary to obtain a loan. Because almost all banks require proof of salary. If this is not presented, lending will be refused in almost all cases. Because the banks see proof of salary as the most important criterion for checking the solvency of the borrower.
Apply for a loan with a guarantor
One option that is accepted as security by almost all banks is to include a guarantor or a second borrower in the contract. This person undertakes to pay the installments in the event of a default by the main borrower. However, this person must be able to demonstrate the required collateral. If the guarantor also has no regular income, the loan is also refused.
However, it is very difficult for most borrowers without a regular income to find a surety. Because they take a considerable risk when they sign the contract, since they are liable in the event of a payment default. Therefore, only persons who have a close and trusting relationship with the applicant can be considered as guarantors. In addition, the guarantor should be told exactly what funds are to be used to pay the loan and why the bank considers these funds to be insufficient.
Loans for the self-employed
A large group of people who earn income but do not receive a regular salary are self-employed. For many banks, the income of the self-employed is too uncertain to be accepted as security. But it is relatively easy for the self-employed to get a loan without salary. Because there are some banks that consider the income of the self-employed as sufficient security.
These banks offer special loans for the self-employed. The conditions for such a loan without salary for the self-employed are usually somewhat worse than for ordinary loans. Nevertheless, many self-employed people take advantage of this as it is the only way for them to get a loan at all. The loans are often required for important investments with which the company can continue to grow.
Loan without salary for the unemployed
On the other hand, if a person has no income because they are unemployed, it is almost impossible to apply for a loan. Because the banks have no evidence that the borrower can repay the loan. In such a case, however, the person concerned should also carefully consider whether the loan is really necessary. If the loan cannot be repaid, it is easily possible that the person concerned will fall into a debt trap from which they cannot escape.
Therefore, a person without any income should really think carefully about how to repay the loan. One way to get a loan without a salary, even if no income can be proven, is dealer credit. These are often issued without any verification of income. The conditions for this are quite different. Sometimes the interest rates are very cheap because they are supposed to make it easier to buy the product, in other cases they are very high.
But here too, too much debt should not be accumulated. However, this loan can provide help in emergency situations without a salary, for example if an important household appliance such as a washing machine breaks down and there are no means to replace it immediately.