Income loans: what are they and where to look for them?

The basic option and option that should be considered first when it comes to loans with no income will be the services of loan institutions as well as Good Credit loans.

Consumers very often come out with the most common sense that a necessary condition for obtaining any form of credit or loan outside Good Finance is having sufficient income, which is also documentable. This conviction is most applicable in relation to the offer of banks that actually have a rather rigid and schematic policy when it comes to the models used to assess the creditworthiness of a potential customer.

It is worth being aware of the fact


That at the moment the operating model of loan institutions will in many cases be quite different from the schemes typical for the sector.

Modern loan institutions very often show a flexible and highly individualized approach to a particular client. In practice, this will simply mean a more flexible model for assessing our creditworthiness by a loan company. Therefore, it may result in a positive assessment of our loan application, even if, for example, we do not have stable and documentable income.

Another option available in the offer of some loan companies will be so-called loans for debt relief. In this case, the customer has the opportunity to obtain financing even in a difficult financial situation, and thus, for example, having debt and/or bailiff seizure.

At the same time, it is worth adding that banks, Loan institutions from a practical point of view are by no means the only categories of entities in which you can apply for a loan. In addition, loan services are also provided by so-called private lenders and even pawnshops.

However, it is obvious that in the last two cases the client will be dealing with entities with a specific mechanism of action, which in addition may involve quite a high risk. However, it remains true to say that the lack of documentable income is by no means a circumstance which, in a way, “automatically” rules out the customer’s chances of obtaining loan financing.

Let’s take a closer look at this undoubtedly interesting issue and try to describe the options available to customers when it comes to broadly understood loans without income.

Income loans for customers: what are their characteristics and where to look for them?

The basic option and option that should be considered first when it comes to loans without income will be the services of loan institutions. It should be recalled here that the loan institution is by no means the same as the so-called para bank. A company with the status of a loan institution must, first of all, appear on the Register of Loan Institutions kept by the Polish Financial Supervision Authority. In addition, the loan sector is properly controlled by the Office of Competition and Consumer Protection.

Lending institutions are also required to conduct their activities in accordance with the provisions of the Consumer Credit Act. This Act specifies, among others, aspects such as the maximum allowable costs for loans/credits, the rights of the borrower or the obligations of the lender, in this case, the loan institution.

It is under the provisions of the Consumer Credit Act that loan institutions are, inter alia, required to provide information on the amount of the Real Annual Interest Rate for their loans even in advertising materials.

As a rule, loans for people with no income under the loan institutions offer will be available in two basic variants, namely:

1. Loans for debt relief or loans for those in debt

2. Loans with negotiable terms

In the first case, as the name suggests, the customer is dealing with a solution dedicated to borrowers who find themselves in financial difficulties. Obtaining a debt relief loan may also be available if the borrower has no documentable income. On the other hand, apart from Good Finance, a loan for debt relief will almost always require the borrower to provide additional collateral for the loan.

The most common form of such collateral

The most common form of such collateral

Is the pledge of real estate, although some lending institutions also accept collateral for, for example, a car. The second option is to take out a loan from another person, i.e. simply a guarantor. In this way, loan institutions try to slightly reduce the risk associated with providing financing to a customer who does not have creditworthiness.

The second of the described options, i.e. loans with flexible conditions, presents a slightly different mechanism. In this case, we are not talking about loans for debt relief, but about the offer of loans outside Good Finance for those customers who do not have standard creditworthiness. In this case, the final shape of the offer presented to the client by the loan institution is always the result of negotiations between the borrower and the consultant of the loan company.

As part of these negotiations, it may be established that the loan company will take into account, for example, those revenues that the client actually obtains, but which, for various reasons, cannot be documented. The loan institution may also, by virtue of negotiations, agree to “turn a blind eye” to the negative history in the potential borrower’s databases, provided that the latter demonstrates its actual ability to pay back the loan.

As a rule, as an income source, loan institutions can also accept various types of benefits, such as 500 plus or a pension. For this category of loans, additional collateral in the form of, for example, a house or apartment lien is not usually required by the lender.

Other options for clients without income

Other options for clients without income

As you can see in the examples above, even the most flexible loan offers presented by loan institutions also assume some kind of verification of the customer’s creditworthiness. However, there are also entities on the market that provide loan financing without performing such verification at all.

A loan without income and without verification of creditworthiness can also be obtained, for example, at a pawnshop. However, it is worth realizing that this will be a highly specific form of credit. First of all, a Good Credit loan always and without exception requires material collateral, of course in the form of items that are attractive to the Good Credit.

Therefore, a loan can be obtained by, for example, consumer electronics, valuables, telephones and the like. Another important issue is the valuation of individual things by the pawnshop. The customer should not be prepared for the valuation to be equal to the market value of a laptop, for example. Most often, the pawn shop quote accounts for 60-70% of that value.

The Good Credit loan obviously involves costs in the form of a commission or interest rate. The entire loan amount, including its costs, must be 100% covered by pledged assets. It simply means that if you want to take out a loan of USD 4,000 plus USD 500 at a pawn shop, your client will have to pledge things worth USD 4,500, naturally given the pawn’s valuation, not the market value.

Advantages of Good Credit loans? As a rule, pawnshops do not verify the customer’s credit history at all, nor do they check their income.

The second option may be financing from private lenders

The second option may be financing from private lenders

Here, however, in some cases, we have to reckon with the fact that such a lender will check our history in the databases (of course, remember that we must always give written consent for such a check). Unfortunately, private loans usually have very high costs. In addition, the borrower’s risk is also great here. Before deciding to use a private loan, it is really worth checking to see if our potential lender is not on the Warning List of the Polish Financial Supervision Authority (this list includes data not only of companies but also of private persons).

Of course, for both loans in pawnshops and especially private loans, it is necessary to read the loan agreement very carefully, paying special attention to the part devoted to costs. And if the document seems unclear or contains conflicting information, it is safest to simply look for another lender.

It should be remembered that any oral arrangements will have no de facto value. We will be required to repay a certain amount based on what was included in the loan agreement and any additional documentation we have signed.