Getting a loan despite a low salary may at first glance appear to be more difficult than it actually is. A low salary does not necessarily meet the requirements that a bank attaches to a loan. But if you look for support or demand a loan amount that is commensurate with your salary, then the chances for such a loan are not that bad.
Income is not the only thing that matters
Even though banks attach great importance to income, this is not the only component that decides on a loan. Because there are still several factors that ultimately result in creditworthiness. And if this is good, a loan despite a low salary will also be possible.
So it is not necessarily a bad thing, for example, if you live rent-free. Own real estate, which you also live in, is very good security for the bank. It also eliminates the monthly rent that would otherwise burden the low salary. And so it may well be that a customer with a low income but without rent is financially better off than a customer with a high income and a monthly rent charge. Because rents in Germany are increasing more and more. Many tenants pay more than a third of their income for rent. If you do not have this burden, a small income can suddenly be very large.
Even a good guarantor or a second borrower can make a loan possible despite a low salary. If the additional person has a good income, the bank will take this as security.
In addition, there are also loan providers who specialize in a loan despite a low salary. There are small loans here at relatively cheap terms. However, you should always calculate in advance whether you can also afford a loan. After all, this must be serviced every month to reduce the loan amount. If you cannot do this over the entire period, complications can quickly arise and the debt trap threatens.
Possible to get a loan despite a low salary
So it is quite possible to get a loan despite a low salary. You just have to adapt to the conditions of the banks with your ideas and wishes. Then you can often get a loan. And if it doesn’t work, you can still use the installment payment offers from mail order companies and retailers. This is because they do not require a high salary, but only assume that you have an income. No matter how high this may be.