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Small income loan – What are the requirements


In most cases it is not easy to get a small income loan. It should play a role in the first place that the credit offers of most banks and savings banks are aimed at larger incomes and at people who actually do not need a loan at all.

Requirements for lending

Requirements for lending

In order to receive an installment or consumer loan from a German branch or direct bank, certain basic requirements must always be met. This includes not only proper Credit Bureau information, but also a sufficiently high income. A problem with a low-income loan is often that it is either significantly below or directly at the garnishment exemption limit and that the banks have no way of accessing the borrower’s income in the event of arrears. For this reason, they will usually only approve a small income loan if the applicant can provide additional collateral or a surety.



If the applicant had taken out a life or pension insurance policy some time ago that already had a surrender value of at least 5000 USD, he might also have the option of assigning the policy of this insurance to the bank as security, and in this way still have one Get low income credit. This variant would have the great advantage that the insurance is loaned, but on the other hand the insurance protection remains unchanged.

There is usually a good chance of getting a loan even if the borrower would have additional income, such as rent or pension income. This income would be added to labor income.

It is also often worthwhile to ask private friends, acquaintances or relatives for a suitable loan. Provided there is a certain level of trust and there is a guarantee that the loan will be repaid at some point, lending should generally not be a major problem. With a personal loan, there would also be the great advantage that the repayment could be regulated individually and is not subject to the strict requirements that are the case with most bank loans. However, even a personal loan must be repaid properly. Therefore, every person with only a small income should make sure that they are able to finance the loan installments for the small income loan in addition to their livelihood.

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