The lender, according to the law, has to convince himself of the potential client’s ability to repay the loan! However, we are dealing with such a form of loan in the offer of non-bank companies. How is that even possible? Has the new wording of the Consumer Credit Act changed nothing? Is the jungle still in terms of loans?
Not. In the case of a loan without proof of income, it is mainly a marketing strategy.
Income for small loans must always be documented
For smaller loans without proof of income, it is usually that there is no need to prove income from the employer. This is the main reason why this service is called “Loan without proof of income”. Therefore, this loan from a non-bank company can also be achieved by people who have only an agreement to perform a job or perhaps a work contract.
Indeed, one to three bank statements are sufficient for non-bank companies to approve a small loan (say, up to ten thousand). Or agree to consult the applicant’s online banking. The employer’s signature and stamp do not simply interest them. For banks, the situation is quite different, because without a valid employment contract or retirement pension you get a very difficult loan.
Large loans without proof of income are secured by collateral
Higher amounts can be borrowed in the form of a loan without proof of income. But in exchange for collateral property. In this way, the lender will ensure the client’s ability to repay the loan. In other words, if the debtor is unable to repay, the property title will pass from the debtor to the loan provider.
He then sells the property and uses the money spent to repay the debt. If he gets more for real estate than the real debt for the property, he pays the rest of the money to the original property owner. But even the opposite situation can arise when even the whole of the debt is not repaid for the sale of the house. And the debtor has to pay the residual debt differently.
Debtors’ registers tell a lot about the applicant
Companies offering loans without proof of income can view the so-called Non-Banking Client Information Register – NBCIR. It is operated in the Czech Republic by CNCB – Czech Non-Banking Credit Bureau, zspo (an interest association of legal entities).
The NBCIR allows leasing and credit companies to obtain creditworthiness, creditworthiness, and payment discipline of their potential clients who apply for any of the non-bank loans.
Loan providers often register and examine the applicant’s credit history. If the applicant has not previously had a repayment problem, there is a high probability that the difficulties will not arise even when approving a loan without proof of income.