Even women on maternity or pensioners have a chance to get a loan, but usually they will need a co-borrower.
There are also groups of people on the market that have lower incomes than the general working population, but they too would like to borrow for either housing or consumption. Lite lender therefore investigated whether a woman on maternity leave, unemployed, pensioner or invalid with income of several hundred dollars had a chance to borrow at the bank.
We modeled an applicant who only has an income of up to $ 400 and would like to receive a loan of $ 1600 without having any other loans and having a positive credit history.
Regular income and creditworthiness
Lite lender said that they would be able to provide a loan to such clients , but only if they met certain conditions. It also depends on other factors such as the required maturity, the interest rate the client receives, and so on.
But analysts are more skeptical about lending these low-income people. A woman on maternity leave has an income from the state of 205 or 250 dollars, this low income level disqualifies her for a loan of 1,600 dollars.
Women on maternity leave have the opportunity to obtain a loan because the parental allowance is considered by the bank as income when examining creditworthiness. ‘However, the loan would have to be higher than $ 1,700 in the case of a building loan or $ 3,000 in the case of an intermediate loan. A second person in a credit relationship is needed to provide such a loan, ”he adds. Those amounts are the minimum amounts of loans which the savings bank provides.
The basic criterion for obtaining a loan with a bank is to have a regular income from employment or business and not to be in the probationary period. Therefore, even an unemployed person does not get credit in the bank.
A pensioner has the best chance of getting a loan from this group. If he has a higher pension, no liabilities or other loans. The condition of banks is that the loan must be repaid by a certain age of the applicant. In some banks this threshold is set to 65 years, in others up to 70 years.
Lenders claims that they can lend to seniors if they pass creditworthiness assessment. It is primarily the ability to repay the loan after deducting the subsistence level.
The postal bank normally accepts both retirement and disability pensions as regular income, but the applicant must also meet the other conditions for granting consumer credit. Here is the important amount of income.
Partial disability, if he has no income other than disability pension, has a minimal chance of obtaining a loan in banks.
The age limit is high
Anyone who thinks he has no chance of getting a loan just before retirement or when he / she receives it would be wrong. Lite lender are willing to legend to older people really into old age. Often this is the only way they can reconstruct housing.
The first building society provides loans to pensioners on the condition that they have to be repaid by the age of 78. By default, lender provides loans to applicants up to 64 years of age, while the borrower’s age at the time of repayment of the loan must not exceed 70 years.
Co-applicant as assistance
Both experts and bankers agree that another solution for low-income applicants who do not meet the loan income is to invite a more creditworthy co-borrower to the credit relationship. Whether family or friends. An applicant who receives a maternity benefit can apply for a consumer loan provided that he / she enters the credit relationship as a co-debtor, or if he / she receives other income in addition to the maternity benefit.
Pensioners also appear on the other side of the credit relationship as guarantors of the loan, their children or grandson. They should not forget this because their commitment is recorded in the credit register and worsens their chances of borrowing.