Loan without proof of income
A loan without proof of income is not that rare these days. Many banks, especially those that are dedicated to sales financing for trade, today dispense with the borrower’s proof of income for consumer goods loans that are taken out directly from the dealer. This always happens with the background that the goods remain the property of the trader until full payment is made, and this provides a certain level of security.
In the mail order business there is also a loan without proof of income
Many consumers today order goods of all kinds, such as furniture. Clothing or electronics in the mail order business and make use of the opportunity to pay off the purchase price in installments. For this they get credit from the mail order business without proof of income. In these cases, too, the goods remain the property of the trade until they have been paid for in full.
The situation is completely different for consumer loans, which consumers can take out directly from the banks as small loans, instant loans or online loans. There is no credit here without proof of income, but the submission of current earnings statements is an important requirement in connection with the credit approval.
Anyone who sends the signed loan agreement to the bank as a borrower without the relevant current earnings statements being attached will not receive the approved loan. This is simply explained by the fact that the proof of income for the bank represents a certain security in addition to the Credit Bureau and must therefore be provided.
What does that mean for loan seekers
Loan seekers without a job or Hartz 4 recipients can at least take out a loan in the mail order business. The question of the employer is not asked. All that is needed here is a clean Credit Bureau for creditworthiness. Retailers ask about the employer, but no one checks to what extent the customer’s information is true, so that people without work can also get credit.
The income from which they then repay the installments is up to them, only they should repay. If he is terminated because the installments could not be paid, the Credit Bureau will be notified accordingly and the creditworthiness will no longer exist in the future, regardless of whether with or without proof of income.