It is often not easy to get a loan for freelancers and the self-employed. Both groups of people have no fixed income. For most banks, however, this is an essential prerequisite for being able to grant a loan at all.
Find the right bank
For the reasons mentioned, many banks exclude freelancers and the self-employed from lending from the start. This applies even if their income is very high and well above the national average.
If you are looking for a loan for freelancers and the self-employed, you cannot avoid doing a thorough search first, which banks, savings banks or Volksbanks grant such a loan. The Internet is primarily suitable for this, which also offers interested people the opportunity to compare several loan offers and use a loan calculator.
Requirements for lending
Regardless of whether a loan for freelancers and the self-employed is required for private or business purposes, it is essential that the borrower’s Credit Bureau information is in order. Otherwise it will be very difficult to find a suitable loan for freelancers and the self-employed.
If the income is insufficient, the bank can request additional collateral, a guarantor or a solvent co-applicant. However, guarantors and co-applicants should be able to make a living without problems and still have enough money to cover the monthly loan installments in an eamergency. The bank will carry out very precise income and / or asset reviews here.
Anyone who has a life insurance policy, a securities account or a debt-free property could also use these valuables to hedge credit.
Approval, payment and repayment
The application and approval procedure for a loan for freelancers and the self-employed differs only slightly from the procedure that is common for other loans. If the requirements for a loan are met, the bank or savings bank will pay the loan within a few days and transfer it to the borrower’s private or business account.
The loan must be repaid in regular, regular monthly installments. At this point, it would be very important that the freelancer or the self-employed make sure that the loan installments have to be paid even if the income fluctuates significantly, decreases significantly or is not at all.
In the event of temporary payment difficulties, you should definitely seek advice from the bank. Otherwise, there are serious consequences that may go as far as the termination of the loan and a corresponding negative entry at Credit Bureau. The outstanding loan amount is due in one sum and could also be attached in the event of non-payment.