In Germany, more than 4 million people are currently self-employed. Their number has been growing slowly but steadily for years. Although this consumer group makes a significant contribution to German economic performance, it is often more difficult for them to obtain an installment loan for the self-employed than other bank customers. The majority of the banks’ most important customers are consumers with a permanent job.
What are the requirements for an installment loan for the self-employed?
Banks make it more difficult for self-employed people to apply for an installment loan than other customers. The reason is that banks rate the credit risk of the self-employed higher than that of permanent employees. As a result, you generally require more documentation from self-employed than from ordinary workers. Proof of income is always required when applying for a loan. An installment loan for the self-employed is the income tax notice. The original must be submitted for at least the last financial year, sometimes for the past two years.
There are banks that also require the original bank statements from the last 3 to 6 months. These documents are required by the bank in order to check the monthly income of the applicant. The information serves to check the creditworthiness (solvency) of the applicant. Information from the Credit Bureau is also very important to get an installment loan for the self-employed. With a negative Credit Bureau information, the chances are slim. It may be advisable to request self-disclosure from Credit Bureau before submitting the loan application.
This can help to avoid many problems in advance. Not all Credit Bureau information is correct. It is not uncommon, for example, to list payment obligations that have long been settled but have not been deleted for some reason. Sometimes a negative entry is also due to the fact that a move was forgotten to inform a creditor about the new address so that payment obligations could not be met. If you discover incorrect entries in the self-disclosure, you have the right to have them corrected by the Credit Bureau.
Where can you get an installment loan for the self-employed?
The first point of contact for a loan application should always be the house bank. After all, she knows the borrower and his financial situation best. If the necessary conditions are met, the chances for a positive decision are highest. Nevertheless, it can be worthwhile to compare other offers. Direct banks in particular offer loans for the self-employed at attractive conditions on the Internet. There are offers that are independent of the applicant’s creditworthiness and in which the self-employed receive the same conditions as permanent employees.