Category Archives: Loan

Loan for freelancers.

Not all banks offer a loan to freelancers because their income is less secure than that of employees. Young professionals in particular often have great difficulty in finding a suitable loan. However, some credit institutions are willing to provide money to freelancers at times.

Conditions for a loan

Conditions for a loan

Anyone wishing to borrow money from a bank must prove that they have a regular income. While employees can submit their payslips, processing a loan for freelancers is a bit more complicated. Some providers require at least two to three income tax assessments, which is why new entrepreneurs have little chance of getting a loan. Almost every bank requires at least one tax assessment.

After all, lending is always associated with the risk of default. Accordingly, the lender requires certain collateral. Real estate, life insurance and other assets can increase the chances of the application being approved. However, a loan for freelancers is usually associated with higher interest rates due to the greater uncertainty compared to installment loans for employees.

In general, freelancers have a much harder time getting a loan. This applies regardless of the industry in which they operate. For example, a specialist with good practice is also considered a freelancer and has a similar difficulty in borrowing as a freelance artist who actually has an irregular income. An overdraft facility is also far from being made available to self-employed and freelance professionals at all banks.

Some credit institutions only offer a loan for freelancers with the restriction that it may only be used for private purposes. For example, a vacation trip can be financed, but no loan is granted for the new computer. However, as more and more people are self-employed in freelance professions, it is quite possible that this customer group will become more of a banker in the future. Until then, freelancers must be well informed about which banks they are welcome as customers and receive good conditions.

Credit calculation as a freelancer

Credit calculation as a freelancer

The calculation of a loan for freelancers is complicated by the fact that the income often fluctuates significantly between the individual months. When calculating, it makes sense to orientate yourself to the weaker times and to check which repayment rate is affordable even with a rather low order situation.

If the loan has been approved for freelancers, it is advisable to save part of the income from strong months for possible financial bottlenecks. This ensures that the repayment rates can be paid at any time. In case of doubt, despite higher interest rates, it is better to choose a slightly longer term with low rates in order to minimize the risk of default.

Immediate loan for unemployed people without guarantor

Unemployment is dangerous. In addition to psychological aspects such as a lack of self-esteem and great lack of drive, this state also leads to a loss of financial freedom of movement. You don’t have your own income. The government grants are just enough for life.

It becomes really problematic when you need an instant loan to react to an emergency. You do not have the necessary collateral for normal lending (mainly because you have no income), and it is also difficult to find a guarantor who will sign the loan agreement in these circumstances. Apart from special government grants for self-employment, there are two options for an instant loan for unemployed people without a guarantor.

Immediate loan for unemployed people without guarantor: The virtual visit to a foreign bank

Immediate loan for unemployed people without guarantor: The virtual visit to a foreign bank

Each major Cream bank generally checks the borrower’s Credit Bureau entry (protection association for general credit protection) before granting a loan. This, in conjunction with the loan application, on which you have to state your income, shows whether you are able to repay a loan. In the case of an unemployed person, the Credit Bureau entry is negative.

As a result, the bank refused the instant loan for unemployed people without guarantor, which could provide the necessary security. The unemployed is therefore dependent on a bank that does not consult the Credit Bureau entry. This applies to foreign banks. You can contact them via the Internet. However, you should take the time to compare offers and study experience reports to separate good and bad lenders.

Immediate loan for unemployed without guarantor: The way out personal loan

Immediate loan for unemployed without guarantor: The way out personal loan

If you cannot find a bank that offers what you want, there is still the option to take out the instant loan for unemployed people without a guarantor through a private individual. It is easiest if you know a person (often relatives) who lends you the necessary money. If this is not the case, corresponding offers from other people can be found on the Internet. These people offer their loans on portals. They are much more free to decide when to grant a loan than the banks, which are bound by strict requirements.

Fixed Rate Loan

A fixed rate loan is very popular among consumers. In contrast to loans where the interest rate depends on the creditworthiness, it offers a significantly better comparability of the conditions. In addition, the additional costs can be assessed immediately and also compared.

Disliked by banks

Disliked by banks

In the case of a loan with a fixed interest rate, the interest does not, as usual, result from the loan amount, the term and the individual creditworthiness, but only from the loan amount and term, the creditworthiness does not matter. Applicants for fixed-rate loans can rely on the conditions specified by the institutes. It is impossible that much worse conditions are presented as a surprise when lending.

It is almost logical that a form of loan pleases the borrowers, and the lending banks do not have as much interest in it. Few banks have had such loans in their program in recent years. However, the number of loans with fixed interest rates has increased significantly recently. The credit institutions have discovered the market for customers with poor or medium credit ratings and ushered in a rethink. Customers with a good credit rating should, however, forego a loan with a fixed interest rate and instead choose a loan with a rate-dependent interest rate, since these are usually cheaper.

Fixed rate loans have advantages and disadvantages

Fixed rate loans have advantages and disadvantages

However, there must always be a minimum of creditworthiness when applying for a loan. It does not matter whether it is a loan with a fixed interest rate or a loan with a credit-dependent interest rate. Borrowers should carefully consider the type of loan they choose. This is especially true for borrowers with poor credit ratings. In the case of credit-dependent loans, it is almost always possible to grant a loan, if necessary using a high interest rate. In contrast, a loan with a fixed interest rate quickly rejects if the creditworthiness does not meet the corresponding interest rate.

As a guideline, it can be assumed that the very cheap loans with interest rates of 5% to 6% are given to people who have an optimal and very good credit rating, have a fixed income, a clean Credit Bureau and more Have collateral to offer.

The fewer of these requirements are met, the more the interest rate applied by the bank rises. However, it is up to each bank to decide which base rate it estimates for the best credit ratings and how quickly this increases as the credit rating deteriorates.

Fixed-rate loans are currently available on the market at conditions between 4.1% and 12.99%. The loan amount is usually limited to 25,000 per loan, with a term of 84 months.