Fulfilling wishes or replacing a broken electrical appliance can sometimes be expensive. Many people today borrow money for all sorts of major purchases, since paying off in installments is often easier than paying the amount in one piece. If you want to take out a loan in Germany, you usually need proof of your income. Of course, banks and credit institutions want to make sure that they are able to settle their debts and pay off their loan installments without delay. But now it is quite possible to get a loan without a pay slip in Germany.
It is also possible, by submitting your employment contract, to provide the bank with the proof that you are in permanent employment and thus are regular employees. In this case, some banks refrain from submitting a salary statement and grant the desired credit without a pay slip. A credit information, as it is obtained for most loans, is also common in this type of loan.
If further evidence is required that you are liquid, other assets in your possession may be included in the credit agreement. This includes condominiums or other real estate as well as items of higher value.
Often no credit for self-employed and freelancers
The search for a loan without a pay slip is different in the case of freelancers or self-employed persons. The Bank naturally wants to minimize its risk of default, but self-employed or self-employed people generally do not have a settled income. Their income varies depending on the location of the orders and the current economic situation. Since this is not ideal for paying off a loan that has fixed monthly installments, most banks refuse to provide a loan without pay slips for the self-employed and freelancers. In some cases, a request from your home bank may help you, despite the lack of regular income.
Loans in the trade without payslip
For direct loans, which can be taken up in the trade for goods, no income proofs are necessary. So if you buy furniture or similar objects on installments, a loan without payslip is usually granted by the furniture store or the respective provider. In this case, the goods already purchased serve as security for the merchant, because this remains the property of the company until full payment of the entire amount.
The payslip and its details
It remains to be noted that in Germany it is still only very occasionally possible to obtain a loan without a pay slip. The payslip serves as a proof for the banks not only how much the potential borrower earns and thus can pay, but also for other important information that can be checked on this proof. Wages are recorded there as well as the marital status of the potential borrower and information about the number of family members living in the household.
In addition, details of the nature of the employment relationship are recorded, such as whether it is perpetual and since when the employee is employed in that company. These are sometimes relevant information for the various banks. That’s why a pay slip is so important and relevant to applying for a loan. For example, lending without a pay slip is not common in most banks and credit institutions.