Loan without proof of income: opportunities & comparison


Why is it so difficult to get a loan without proof of income? Read here why most of the financing cannot be obtained without proof – and where you can still get a loan. Who actually writes and advises here? About us

That’s why the banks are blocking themselves


A bank cannot get a loan without proof of income, because the banks always want to find out two things before granting funding:

  • Is the applicant able to repay the loan as agreed?
  • Is the applicant willing to repay the loan as agreed?

In order to be able to answer both questions, the bank obtains various information (including from Credit Bureau) and at the same time requests some documents or evidence from the applicant. These documents also include proof of income.

That’s why the banks’ “no” makes sense

The clerks assess whether an applicant receives a loan or not solely on the basis of measurable data. These include, for example:

  • Monthly disposable income – for example wages, unemployment benefits or pension payments
  • Monthly expenses (fixed costs) – for example rent payments, internet and smartphone contracts, tickets for local public transport and / or running costs for a car
  • Current loans – for example a car loan, a consumer loan or a loan for a property; this also includes the permanent use of the expensive overdraft facility (“overdraft facility”)
  • Number of credit card experts are of the opinion that those who own a large number of credit cards either have a particularly relaxed attitude to financial matters (and may not be very careful when it comes to repaying loans) or require the cards because the overdraft facility is already fully used is.

There are many other statistical characteristics that are used to assess creditworthiness. A few friendly words at the bank counter will not help (as some applicants think) – banks only rely on numbers.
Meaningful data The experience of many years shows that the data collected (e.g. the Credit Bureau score or the ratio of monthly income to monthly expenditure) is actually meaningful. Statistically, the likelihood that an applicant whose personal data may look poor in terms of creditworthiness will still pay back funding as agreed is unlikely.

These groups of people are often affected

These groups of people are often affected

If you are looking for a loan without proof of income, you do not necessarily have to be short of money (see also credit for low-income earners or credit for the unemployed). In addition to people with Credit Bureau problems, z. B. Students and the self-employed also refrain from submitting proof of income.

Students often receive financial allowances from their parents, so that in reality the financial budget looks much better than “on paper”. The self-employed can in turn submit payments and tax assessments, but of course no proof of income. Do not confuse it with “Loans without Credit Bureau”! A loan without proof of income should not be confused with a loan without Credit Bureau or a loan despite Credit Bureau entry. As described, there are several reasons why proof cannot be provided – problems with the Credit Bureau need not be the reason for this.

So a loan without proof of income is still possible

So a loan without proof of income is still possible

Anyone wishing to take out financing from a German bank (e.g. a traditional private customer bank) cannot avoid submitting proof of income. The only exception to this is if income is proven by other means, such as a loan for the self-employed (based on incoming payments and tax assessments) or a loan for students (based on bank statements). However, there is also the possibility to take out a loan “from private”.

With a “private” loan, the money is not provided by a bank, but by a private individual. There are several companies in Germany that specialize in brokering these loans “privately”. This has several advantages. The Benefits of a “Private” Loan

  • Donors and borrowers find each other on the various brokerage platforms quite simply and easily.
  • The sponsor decides whether an applicant is creditworthy or not. A bad credit score does not have to be an exclusion criterion.
  • If the funding comes from an intermediary, it is not necessary that the sponsor and borrower know each other or know the other party’s name. The anonymity of both sides is therefore preserved – processing is carried out entirely by the agency.

However, there are also disadvantages: The Disadvantages of a “Private” Loan

  • Individuals who lend their money usually do this to make a profit. As a result, lending rates are usually quite high.
  • The creditworthiness check is often not as strict as, for example, a bank. What initially sounds like an advantage can quickly become a disadvantage: the check is not only for the security of the bank, but also for the applicant. Anyone who is not classified as creditworthy at a bank will still receive funding from some brokerage portals – although the applicant may not be able to afford it. The applicant should be warned! A debt spiral threatens, the so-called debt trap.

Applicants should always ask themselves why a retail bank refuses to fund. If insufficient creditworthiness is the reason, funding should always be avoided – even if a loan is granted elsewhere (for example in the form of a “private” loan).

The banks have their reasons

The banks have their reasons

Please note: Lending banks generally have an interest in selling their products – their loans – to men and women. If a bank now refuses to provide financing, the clerks have determined that there is a high probability that the consumer will not be able to afford the loan. This decision should not be taken lightly by consumers! If the financial resources that are available monthly are simply not sufficient for the loan, then financing should be avoided. Otherwise there is a risk of a debt trap from which, in the worst case, no way out.

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