When applying for a loan from a banking institution, one of the most important requirements is to provide a salary certificate. It is quite obvious that people who cannot document them can basically forget to grant a loan. It is different in the case of non-bank institutions. Persons with no fixed income may also apply for a payday loan. On what basis is the payday loan granted without verifying the earnings certificate?
For whom payday income without income?
Customers have already got used to the fact that companies offering non-bank loans limit the formalities related to the payday loan process to a minimum. They are also aware that people applying for it may have a stable situation or financial history, but unfortunately they cannot always document it.
After all, you can have many sources of income and they do not necessarily have to be formally confirmed by a certificate. This is particularly about the income statement. For these people, including the unemployed, loan companies are preparing an offer commonly referred to as payday income.
Loan and certificates
At the outset, it should be emphasized that, of course, not every non-bank entity grants payday loans without income certificates. In many cases, before they transfer funds to the borrower’s account, companies will ask for a document that confirms that they receive regular income.
This income may come from a variety of sources – it may not necessarily be an employment contract. The companies accept the work contract, the mandate contract. It can also be evidence of receiving a disability or old-age pension. Self-employment and even occasional work are also considered. For some companies, alimony is an acceptable source of stable income, but, importantly, it should be funds allocated directly to the borrower, and not e.g. to his children.
It is also important to note that confirmation of stable income can take many forms. It is especially important for people who hope that the loan process will not take too long and thus the formalities will be limited. Sometimes, all you need is a bank statement, on the basis of which you can verify that the borrower receives regular inflows to your account. Importantly, like all kinds of payday loans, these are given to adults over 18 years of age.
Instant income without income – who gives it?
In addition to those companies that will ask for some income certificate, there are a lot of those in which there is a loan with no documented income. And there are not many of them – it is over 50% of entities operating on the market.
On what basis is such a loan granted? First of all, the lender pays attention to the information we have included in the loan application. Usually, there is a question about the amount of monthly revenue. They may of course come from various sources, but we will not be asked to describe them in detail. A declaration of the amount of constant income is enough. In many cases this will be treated simply as true information that does not require further verification.
However, you should be aware that in some cases, the lender may take steps to authenticate us as borrowers. It’s about checking our financial credibility. It is not a difficult or lengthy process. It is usually connected with checking our credit history or possible debts. The main source of information here is the Credit Information Bureau or the Economic Information Bureau. Such action depends on the loan amount you are applying for. The number of installments to which we want to spread it is also important.
Installment loans with no income?
Slightly different types of payday loans are also granted as installment loans. For a potential customer it is often a more attractive offer and a more convenient form of debt repayment. Usually, the whole liability is divided into equal installments. Each of them already includes all fees related to granting the loan.
However, an installment loan without proven income is not so easy to get. Mainly because loan companies attach quite a lot of importance to some form of collateral for borrowed funds. And such is even a steady income, which gives certainty that the borrower will pay for subsequent installments. But the modern market is so developed that here we can also find offers of at least a few companies. Their ranking is conducted in the form of online comparison websites for offers on industry dedicated websites.
Internet payday loan is a particularly convenient form of such a loan. On the websites of entities that grant payday loans, a transparent and easy to use calculator is usually available. The first parameter that we enter is the amount we want to borrow. These of course differ. It can be from USD 500 up to USD 10,000. Another variable is the number of installments that we decide to spread repayment on. And here we have from 1 to 24 months. In addition, a repayment schedule is created in which, month after month, the amount of each installment and the date of its settlement are listed.
Using such a tool gives us a full and reliable picture of the obligations associated with granting a payday loan. Of course, the borrower has access to them before establishing a formal application. Before we decide on a specific offer, it is worth checking several options by introducing various lending parameters. This combination allows us to choose the most advantageous solution.
Consolidation of payday loans without income – is it possible?
If you want to consolidate payday loans, your creditworthiness is very important. And most often it is related to having a stable source of income. Equally important is the credit history, i.e. timely repayment of your previous obligations. A lot depends on the individual financial situation. If we are unable to obtain a consolidation loan ourselves, for example a consolidation loan with a guarantor or one secured by real estate is involved.