Being a liberal or self-employed professional makes it very difficult to get credit, as there are no paychecks, lenders and banks tend to deny the request. So how to get loan without proof of formal income at those times when extra cash is needed? It’s possible?
Is it possible to get a loan without proof of income?
Yes, it is possible! In general, financial institutions tend to require proof of income with a means of security, as it is more feasible to lend money to someone who can prove they can afford it than the other way around. But first of all know how not to have the dirty name, and have a greater ease of getting a loan.
However, for those who do not fit this profile, there are some other ways to get loan that exempt the attestation of salary or retirement. Know them below:
It is one of the oldest loans in history and is currently in disuse, but some institutions still make it.
The thought behind this way of giving money is to use as collateral some valuables, which are held by the bank or pledge as long as the amount is not refunded, after the settlement is returned the artifact is returned to the owner.
In case of default, the piece becomes property of the institution.
It is offered only to those who aspire to undertake their own business, becoming a microentrepreneur, usually based on small amounts and often to guarantee the entity, the applicant needs to present a business plan.
It is similar to the pledge, but unlike the disuse of the former, this is much sought after.
It works in such a way that in order to obtain credit clearance, it is necessary to have some asset, such as a property or vehicle, that will be used as a guarantee to the bank, because in case of default the asset is taken by the institution.
Despite this negative bias, it is a very popular category, as it has long payment terms and low interest rates, is available from several banks and usually offers up to 70% of the collateral value.