Small earners will not be very lucky with banks to be able to apply for a loan. There are no special loans for low-income earners on the market because the income is so low that it cannot be seized. Some groups of people always find it more difficult than employees with a normal income. Banks are reluctant to take a risk when lending, which often excludes low-income earners.
Borrowing difficult – but not impossible
Even if it is difficult to get a loan for low-income earners, the shotgun should not be thrown into the grain. These people also have a chance of getting a loan, even if the search for it takes a little more time. Income falls away as security. That is always the most important thing for banks. But other collateral can also ensure that the credit rating is not completely in the basement.
So the loan seeker can find a guarantor. This can be from the family or from the circle of friends. It is only important that the guarantor has a normal income which is so high that it can be attached in an emergency. If this is found, it always occurs when the actual borrower cannot pay the installments.
What other option is there?
If no guarantor is found, your own life insurance can be used as security. However, it must be ensured that the repurchase value of the insurance can cover the loan amount. Banks usually require a surrender value of at least 5,000 USD. However, not everyone has life insurance that has been running for several years. Those can only see that they can find a lender on the Internet.
Individuals offer a loan for small earners on different platforms. However, not every offer may be accepted. There are not only providers who are good with the borrower. There must be no insurance with the loan application and no fees may be collected in advance.
If this is the case, these offers should not be accepted. If no success is in sight here either, the only thing left to do is to ask the family if they are lending money. If this is possible, a loan contract should also be drawn up as security so that there are no misunderstandings.