Loan over a longer period of time
Although a loan is usually not easy to obtain despite low income, it is still not impossible. There is usually nothing to be said against this, especially when all other requirements are met.
Before deciding on a low-income loan, anyone interested should seriously ask themselves whether they are really able to make regular repayments on the loan over a longer period of time. If this is not the case or if there are legitimate doubts, he should prefer to refrain from a loan despite a low income. An important prerequisite for obtaining a loan from a German bank or savings bank is a good private credit checker information. Only then does it make any sense to think about a low-income loan. Otherwise, the bank will usually reject the application immediately.
However, if the private credit checker information is in order, many banks are quite willing to grant a loan despite low income. Since this loan is associated with an increased risk, the interest will usually be somewhat higher than with another installment loan. For this reason, it would be very important for any low-income loan prospect to apply for a fixed-rate loan. Only then would he have the guarantee that he would not have to pay excessive interest due to his poor credit rating.
Small loan or a overdraft facility
If efforts to obtain a loan are not successful despite a low income, a small loan or a overdraft facility may also be an option. In the case of a small loan, the amount borrowed is usually very low, which then also results in relatively low monthly repayment rates. These can easily be paid even with a low income. A bank overdraft facility can always be granted to bank customers if they have regular payments to their current account. The amount of the overdraft facility is then based on the amount of these incoming payments. Therefore, the overdraft facility with a low income will also be lower than the overdraft facility with a high income. It may also be worthwhile to take out a loan despite a low income among relatives or friends. It can then be repaid very flexibly.
A dealer loan is usually much easier to get than a bank loan. This is essentially due to the fact that the loan amount taken up is offset by a concrete value. In addition, the goods financed by the loan remain the property of the dealer until the customer has paid them in full. For this reason, a dealer loan is often even given without proof of income. It is quite sufficient if the private credit checker is in order.