Each bank links lending to certain conditions. This also includes a regular income, which should be at least high enough to ensure that the monthly loan installments are paid. Otherwise, lending becomes very difficult.
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Before taking out a loan, every bank customer should be aware of what loan amount they need and how high the monthly repayment rate can be. If you only have a small income, you will hardly be able to get a loan with a total amount in the six-digit euro range. A small loan in the amount of 1,000 to 5,000 dollars can, however, be realized. An essential requirement for this is that the Credit Bureau information is in order.
A loan despite a small income can not only be taken out at the house bank, but at almost every German bank. Many direct banks that do not have an extensive branch network have particularly favorable conditions for a small loan. A comparison on the Internet can provide more detailed information, which can be carried out at any time of the day or night and is constantly updated.
If the income is significantly below the garnishment exemption limit, the bank cannot accept it as the sole loan security. This problem will mainly affect low-wage earners or part-time employees, but also full-time employees from certain professional groups who earn very little income. The number of people who are unable to make a living from their work despite full-time employment and who have to receive supplementary social benefits has increased significantly in recent years.
If you have a well-earning spouse, you could use him as a guarantor or as a co-applicant for the loan despite a small income. However, this person should be aware that they will have to pay for the loan installments if the actual borrower is no longer able to do so. Other collateral that the bank is happy to accept is life insurance, a custody account, a debt-free property, or larger cash assets.
Application and approval
A loan despite a small income can be applied for either in a bank branch or on the Internet. The first-mentioned variant has the great advantage that the bank advisor can contact the customer immediately with personal questions. An online application is possible around the clock and is not tied to certain bank opening times. If there is no direct contact between the bank advisor and the customer, the credit documents must be sent using the PostIdent procedure.
To do this, the customer must go to a post office counter and present his ID there. If the identity is clearly established, the credit documents are forwarded to the bank. Now you can decide on the loan application. If all the requirements for a loan are met, the loan can be paid out within a few hours despite a small income.