If the income is modest, it will cause some inconvenience. Because spontaneous purchases are hardly possible. Good thing is that there is a small-income loan , with the help of financial shortages can be cleverly bypassed.
When is talked about a small income?
A small income is usually spoken when it is below the attachment exemption amount. How high this is depends on the circumstances of the person affected. Singles without maintenance obligations have a lower garnishment tax than married persons who have to meet maintenance obligations. The garnishment table shows exactly what the corresponding amount is.
A small income is given even if only a mini-job is pursued. Even part time often leads to a small income. Many women are looking for a part-time job in order to have enough time for the family. If the man earns well, this may not be a problem. However, if she wants to take out a small-income loan on her own, she will need help.
By the way: State funds such as child benefit, housing allowance, unemployment benefit, sickness benefit or parental allowance do not count as income. It can therefore not be included in the calculation around the loan.
Guarantor – a low-income loan
The easiest way to implement the low income loan is to not take the loan on its own. A second applicant or a solvent guarantor can be quite helpful. Because they bring security in the credit and improve above all the weak income.
In addition, the bank has several advantages with a second borrower or guarantor. If there are defaults, not only the borrower, but also the second person, the outstanding amount can be claimed.
Our Note: For married people, the banks assume that the spouse supports the borrowing. If this is not suitable, another person can be called in as well.
Low-income loan – the recording
The inclusion of a low-income loan should be well planned. At the latest when reviewing the submitted documents, the bank will disturb the small income. In order not to receive a credit cancellation, one should prepare well for this situation.
In the best case so that the low income can be optimally balanced. A guarantor, a material security and an adjusted loan amount as well as low monthly installments are an optimal preparation. It is also important that the private credit of the prospect is positive. Because two weak points tolerate no reputable bank when borrowing.
If you are working with a guarantor, you must actively participate in the application for the loan. He must be solvent, have a decent income and sign the loan application together with the actual borrower. On top of that, he must be able to submit credit-related documents. These include proof of income and account statements.
An adjusted loan amount is given if it fits the income. For a small income, therefore, no large loan amounts should be expected. Everything must be in a good relationship so that borrowing does not fail.
Do not act prematurely
Even if a low-income loan is urgently needed in many cases, it should never be premature. It is certainly nice if planned acquisitions can be implemented in a timely manner. But the loan must never lead to payment difficulties. The recording should really only be made if there is enough money for the repayment.
Equally important is the correct procedure when taking out the loan. Without a comprehensive comparison, no credit should be taken. Here on the internet, our loan calculator helps with the comparison. It shows up-to-the-minute offers, all of which can be adapted to the project and the requirements of the borrower. In the end, the loan can be used, which really fits and where the default risk is lowest.