Installment loan self-employed
An installment loan for self-employed persons is subject to conditions other than an installment loan for employees. The self-employed usually do not have a steady, regular income, and so the bank needs other collateral and evidence to even approve installment credit for the self-employed.
What is a installment loan for self-employed?
Installment loans for the self-employed are basically differentiated into private and business loans. When applying for the loan, you, as a self-employed person, usually have to indicate whether the loan is used privately or for business. Some installment loans are earmarked. For example, a car loan may only be used for the purchase of a car, but not for the financing of a journey or company-used materials. However, many privately used installment loans for the self-employed are not earmarked and may therefore be used freely, like installment loans for employees. This way even the self-employed can fulfill the dream of a big trip or set up the apartment again. In the case of an installment loan for the self-employed, you can usually set the amount of the loan and the term of the loan yourself. From this results then also the monthly repayment rate, to which still the interest added.
What are the requirements for an installment loan for the self-employed?
Self-employed people often find it harder to get an installment loan than employees. An employee usually has a regular income and can prove this by means of salary statements and account statements. On the other hand, a self-employed person often does not have a fixed income. Therefore, banks require self-employed other evidence. Thus, self-employment must exist for one or three years, depending on the bank. In addition, account statements, the income tax statement, a revenue surplus bill and a business account can be required. The bank can determine from these proofs whether the loan can be repaid at all. That is, the bank determines the so-called creditworthiness – also called credit rating. The credit bureau will also be checked. The credit bureau information should turn out to be as positive as possible even among the self-employed. The evidence required may differ from bank to bank. Some banks want to hedge additionally and suggest the use of a guarantor or require collateral such as a life insurance, a property or a car.
Where do self-employed people find an installment loan?
An installment loan for the self-employed is offered by both branch banks and online banks. Many installment loans for the self-employed can be applied for online. For this purpose, an online form will be provided by the respective bank. This form will be filled out, printed out and signed. Then you submit the necessary evidence, has the identity confirmed by a post office worker and sends the bank the loan application by mail. For a branch bank, all these steps can be done directly in the bank. Before deciding on a specific installment loan for the self-employed, one should seek offers and above all compare the interest. Who compares the different offers for a installment loan for self-employed, can save some money.