Although it may seem that not receiving a payroll monthly as a source of income will reduce our chances of obtaining financing, the truth is that if we have an alternative source of remuneration, we will be able to obtain the financing we need without problems.
However, for the non-payroll loan application to be accepted, income that does not come from a payroll must meet the following conditions or they will not grant it to us.
Conditions to grant for non-payroll loan
Regular : that is, we receive them monthly and regularly, so it cannot be an income for a particular month, since it will not be considered valid to contract credits without payroll. In addition to being monthly, we must receive them for a minimum period of time since we request financing so that the lender is aware of our employment history and, obviously, financial. This period will vary depending on the type of loan without payroll that we request and the entity that we go to.
Justifiable : with this characteristic we mean that the income entry can be justified because it comes, for example, from a payroll or a pension. In the case of the self-employed, a declaration of VAT or personal income tax may be presented as a supporting document and in the case of retirees, an official document justifying the entry of the pension will be sufficient.
Sufficient : that the money that we receive periodically is sufficient to cover the loan installments, including the principal plus accrued interest, and that, in addition, it allows us to live, that is, that the payment of the credit does not imply a mismatch in the stability of our economic situation. In any case, the limit may vary between 200 and 2,000 USD, since it will be established by each lender and their risk policies.
In the event that our income does not meet any of these characteristics, it will be much more difficult for us to obtain the credits we need, whether it is a payroll or another type of remuneration. This is due to the fact that the entity may consider our risk income invalid as it cannot cope with the return of the credits without payroll within the terms agreed in the contract.
In addition, if this happens, we may run the risk of entering an over-indebted situation from which it will be very difficult for us to get out and, therefore, could cause us problems regarding our economic stability and facing the future. Obtaining other loans in the future, especially if they are of high amounts and if they are granted by banks, since they never accept requests from people who are unpaid.
5 Valid Income to Get Payroll Loans
Private equity entities do not determine a specific type of remuneration to obtain loans without payroll since, provided the conditions are met, any type of income will be valid. These are some examples of the types of income that do meet the three characteristics previously mentioned, so, in principle, they will be valid for us to grant loans without payroll:
Pension : people who receive a public pension enjoy periodic income, so, in principle, they will be able to request credits without payroll, as long as the total pension is sufficient to repay the credit and their commissions, without this pose an economic problem. If we are retired, we will also have to take into account the maximum age with which we can apply for a credit. Depending on the entity, the limit may vary, but generally it is usually set between 65 and 75 years.
Self-employed income: if we have stable and sufficient income, even if it does not come from a payroll but from our activity as self-employed, we can also present it as proof of solvency. Based on our stable income we will also be able to access larger personal loans and not just mini-credits.
Scholarships : the credit company will take into account those income that comes from scholarships, whether they are public or private, as well as subsidies, aid or state benefits. Of course, the money we receive will have to be, first, enough to be able to reimburse the capital that we have requested and, second, to reach our account periodically.
Leasing a property to a third party : if we have a property rented to a third party and this situation gives us regular income for a sufficient amount to be able to satisfy a credit, we can present this credit as proof to the lender and the latter will assess whether it is sufficient.
Unemployment benefit : if we are unemployed and receive an unemployment benefit, we can apply for urgent loans without payroll, we just need to send the documentation that affirms that, in fact, we periodically receive a monthly benefit sufficient to carry the total cost of credit. In any case, not all entities will allow us to obtain financing if we are unemployed, since we will not be able to guarantee the repayment of the requested credit within the agreed period.