Loan without certificate of earnings.
Loan without a certificate of earnings
If no proof of earnings is available, there can be several reasons. In addition to unemployment, the most common are working as a self-employed person or as a freelancer. It is often not irrelevant for banks how well business is doing, because if a loan is to be applied for without a certificate of earnings, most bank employees will initially adopt a reserved attitude. It goes without saying that good conditions are difficult to elicit from this attitude.
Bank or not bank?
Whether the loan can be drawn from the bank without a certificate of earnings depends primarily on the additional collateral. Proof of earnings is one of the most important things that are required in addition to the Credit Bureau entry for the credit check. And it is not easy to find an equivalent substitute, because payroll not only shows past wages and salaries, but also confirms a certain amount of future income for the bank’s employees.
The self-employed are primarily offered the opportunity to conduct a business evaluation of their company. Of course, a lot of documents are required for this and one has to come to terms with the fact that the bank takes a close look at them so that the loan can be granted without a certificate of earnings. The advantage of this, however, is that it can also reveal vulnerabilities that you might otherwise have overlooked yourself.
Freelancers only have access to income tax statements. However, these can also only provide historical data. Banks assume that the self-employed and freelancers will be the first to be affected if there are economic fluctuations. Ultimately everyone is affected, but the groups mentioned usually do not have high reserves that can be used to compensate for fluctuations that are noticeable as drops in sales or sales in the company in the medium to long term.
If the above-mentioned documents are not sufficient to take out a loan without a certificate of earnings, other collateral can also be brought into play before the possibilities at the house bank are exhausted. If the applicant owns real estate, for example, they can be mortgaged. This requires an entry in the land register, through which the bank’s claims against the borrower are laid down. But if you use your property or building as a private retirement provision, you won’t really get used to this idea.
Where can you find alternatives?
Capital-forming life insurance owners can take another route here by lending to their insurance policy. Compared to the sale or even the termination of the contract, this is the best solution to get money from life insurance in advance. With a policy loan, you basically borrow your own money. Of course, this presupposes that corresponding sums are also available.
Young policies with a term of only a few years are therefore less suitable for this. The insurance company usually offers relatively favorable conditions for this, because the risk is manageable. After all, the policyholder is entitled to the capital anyway, only at a later date.
A completely different path can be followed through personal loans. Here you can get the loan without a certificate of earnings from private individuals, who in turn act as investors. The conditions can even be much cheaper here than with a normal bank loan. However, the self-employed and freelancers have had to pursue their profession for at least two years in order to get a loan here without a certificate of earnings.