A lender, usually a credit institution or bank, pursues the same goal as other businesses, namely the generation of profit. When the lender pays the loan, he must first accept the loss of funds. He then makes the profit by paying the borrower interest in addition to the loan repayment.
If the borrower is unable to service the loan because of his financial situation, the lender not only loses the profit in the form of interest, in the worst case he also loses the money lent. In order to limit this risk, the creditworthiness of the borrower is assessed before a loan is granted.
Blue eyes are not sufficient as proof of creditworthiness
The applicant’s own information is helpful for the credit check, but in no way sufficient. A loan without a payslip can be applied for, but such a loan without a payslip is hardly granted. Because the pay slip contains more information than the proof of the income amount of the last month. The lender can also see from the pay slip whether attachments are already taking place, what marital status the applicant has and how long he has been employed in the company that issued the statement.
Payroll is therefore crucial for the lender to assess the risk he takes on lending. A loan without a payslip will therefore fail from the outset, unless the creditworthiness of the borrower who applies for the loan without a payslip is proven in another way.
Creditworthiness without a payslip
Limited lending, for example to finance a specific product, can be granted as a commercial loan. This is common for department store chains. In this case, the risk of default is limited by the fact that the loan amount is offset by the goods handed over, which can be reclaimed in the event of default.
Other forms of collateral are also conceivable for obtaining a loan without a payslip. Anyone who has invested a large amount in a bank can also get a loan without proof of income if the money invested is used as security. Real assets such as real estate or vehicles can also be used as security for the lender if a loan without a payslip is desired.