The use of cash loans is really possible for people with low, medium and high income. Very often you don’t have to have even solid credit standing. In accordance with legal conditions, retail banks also grant cash loans to more risky clients, although the borrower is then required to provide adequate collateral. Most often, it is enough to sign a document regarding voluntary recovery in the event of economic problems.
Cash loans not only reserved for rich customers
The amount of the cash loan depends to a large extent on the income obtained, the type of contract, as well as the issue of conducting professional business activity. Only a rich client will receive the largest cash loan under certain conditions. Micro loans, e.g. up to five hundred or two thousand dollars, go to a group of financially excluded clients, with low monthly income, as well as irregular income. At retail banks, it is impossible to bypass the monitoring of your previous credit history or creditworthiness in general. In parabanks, the system of building cooperation with the client looks slightly different. At the beginning, the parabank allows you to take out a small loan amount. If you pay installments on time, you will receive information on granting a larger limit without any formal problems. In most parabanks, you simply build your own repayment history inside a financial institution. With a low income, the creditor usually sets the lowest monthly installments possible, and is mandatory. Unfortunately, with an extended loan period and low installments, you pay more for the entire loan (a combination of the basic amount and interest). It can be said that the poorest part of society repays the most expensive loans. Why is this happening? It is about issues of risk and its optimization from the perspective of large financial institutions. A smaller customer with a small income means a greater risk. In Poland, there are no really personalized elements of the borrower’s analysis. Each client is assessed on the basis of basic indicators, e.g. income, number of dependent family members, type of employment contract, marital status, age. What counts is the presence in popular registers of borrowers, e.g. in the Credit Information Bureau and in the Economic Information Bureau.
What conditions must be met to obtain a loan with a small income?
It’s not just worth focusing on low income when applying for a cash loan. Lenders also analyze the type of employment contract. The most popular types are a fixed-term or indefinite employment contract, a mandate contract, as well as a work contract. With earnings of the national minimum on an irregular work contract, you have a chance for a loan, but unfortunately a small one, within a thousand, two thousand dollars. Of course, retail banks or parabanks use different strategies to attract similar customers. Pay attention to industry promotions. With a small income, a very positive credit history, credibility in the Economic Information Bureau, and relatively stable monthly income help. If you can prove the relatively low cost of living, then you will get a decent loan. Some people with a minimum wage apply for loans only after moving back to their immediate family. In this case, most retail banks are able to make some concessions. Expect recent requests to secure a cash loan.