Even though unemployment in our country is currently quite low and the minimum wage is supposed to ensure that everyone receives a decent income for their work, there are still a lot of workers who have to make do with a low income.
For example, if you only have a mini job or only work part-time. This is always problematic when a loan is to be taken out despite little income. Because banks and savings banks always look very closely at income. And as a rule, this must not be less than the garnishment allowance for borrowing.
When to talk about a low income
A low or low income is always present if this is below the neuralgic mark of 1,000 USD. These 1,000 USD represent the garnishment allowance. That is, the amount that cannot be seized. Therefore, only income over 1,000 USD counts as creditable income, based on which the loan amount and the amount of the monthly installments are based.
However, if you are a low-income earner and are still looking for a loan with little income, you don’t have to despair. Because there are plenty of ways to get financial support in the form of a loan, even on a small budget. All you have to do is adjust your credit requirements a bit and be willing to compromise here and there.
The second borrower and the guarantor
The easiest way to expect a loan despite low income is to involve a second borrower or at least a guarantor to borrow. In other words, a person who takes out the loan with you despite little income and is therefore jointly liable for the loan.
When looking for such a partner for borrowing, you should make sure that the person is relatively close to you and has a good to very good fixed income. The Credit Bureau is rather secondary if it is good for you. Both borrowers are calculated together so that it is sufficient if one of the borrowers includes the good Credit Bureau and the other borrower the good income in the credit protection.
Consumer credit – the cheap alternative
A good alternative to the classic installment loan is consumer credit. It is earmarked and is usually taken out not by a bank but by a trading company. The trading company acts as a middleman between the bank and the borrower and always provides the consumer credit when you want to have the goods purchased financed there. The money from the consumer loan is therefore not paid out directly to you, but flows automatically into the payment of the purchased goods.
The advantage of consumer credit lies in the fact that you do not have to have a high income to take it up. It is sufficient if you can state that you have earnings that exceed 450 USD a month. It is even better if the revenues break the 600 USD mark. Where the revenue comes from is not relevant at first. Because the financed goods are always considered security and will be reclaimed if the repayment of the consumer loan is not proceeding properly.
The personal loan – a good alternative in need?
Many see a personal loan as another chance for a loan despite little income. It is considered a loan in need and should always help when traditional banks do not want to provide financial support. But does it also help with a loan despite little income?
A personal loan actually only makes sense if the Credit Bureau speaks against a regular loan. Because even private donors want collateral that is easiest to provide with a good income. Despite all of this, a personal loan is not completely useless. Because together with a second borrower you will also be able to find your desired loan there. It is another matter whether this is possible on the terms you want. We therefore recommend that you always check and compare several loan models before applying for a loan. With the help of a comparison calculator, you will surely find the loan despite the low income that you need for your project.