An important prerequisite for a loan approval is the corresponding income. For this reason, banks also require proof of income. However, there are exceptions if the loan seeker turns to his house bank. There is already a relationship of trust between the bank advisor and the customer.
When taking out a loan, the advisor takes a look at the account and thus obtains information about the client’s income. The monthly incoming payments play a major role in a credit decision. A quick loan without proof of income is therefore not possible on the Internet.
If the proof of income is missing
Anyone who works also receives proof of income from his employer. In the case of unemployed or Social Welfare recipients, the notices from the employment and social welfare offices are not accepted as proof of income. These are social benefits with which a loan is not possible.
Proof of wages or salaries is required to take advantage of the cheap offers from online banks. The customer must state their income in the loan application, however the banks must check the accuracy. It has happened in the past that loan seekers have given false salary information. This fact becomes apparent when you submit your income statements at the latest.
How is a quick loan possible anyway?
A quick loan without proof of income can also be made possible by using the overdraft facility in the checking account. Once this is in place, the bank no longer checks income when using it. This arrangement enables the customer to be flexible, as the arrangement can be used at any time. To quickly close a financial gap, he is made for it.
However, the use can be very expensive, because the banks earn a lot of money from the overdraft facility. This quick loan without proof of income should therefore only be used for a short time. If proof of income is available, the overdraft facility can also be converted into an installment loan at a later date.
With a later conversion into an installment loan, you can save cash. Interest rates on installment loans are cheaper than ever at the moment. Those who have been using their overdraft facility for a long time should think about this debt restructuring measure. If the credit rating is good and there is a permanent job, there should be no problems with the conversion.
Why do banks want to see proof of income?
It’s not just about whether the borrower has an income. Rather, the bank also checks whether this income matches the loan amount at all. This is to prevent over-indebtedness. The bank also sees in the proof of income whether wage or salary seizures have already been made or whether the borrower already has to pay a loan to his employer. In both cases, a loan is no longer possible.