Lenders typically require proof of funds such as a salary certificate or a copy of the employment contract, sometimes also copies of bank statements from recent months. In some cases, they do not provide proof of income, they do not have to do without proof of credit from unknown customers.
Usual waiving of evidence
Pawnbrokers do not provide evidence of income because the pledge is sufficient security. The credit card installment function is also granted as a loan without proof of the current income. When applying for a card, most credit card issuers are satisfied with a statement by the customer about their monthly income.
In return for the waiver of proof of income, the credit card is initially equipped with a small limit, which can be increased after some time with regular payment of all credit card statements. Mail order companies also in most cases approve payment in installments as a loan without proof of the amount of income.
The amounts financed are lower in the mail order business than usual for cash loans. In addition, the retention of title up to full payment offers additional protection for the merchant, given the loss in value of the goods. Similar to mail order companies, department stores and specialty stores do not provide proof of income for installment purchases for small amounts to be financed.
No evidence of faster loan processing
Some commercial banks offer their call credit up to a fixed amount without proof of salary. These are small loan amounts of two thousand or three thousand USD, while the usual proof of income must be presented if a higher disposition limit is desired. Granting the loan at a precisely defined amount without proof of income speeds up the process of processing the application, because by far the majority of customers choose the amount specified for the simplified lending as the framework.
When determining the amount of the overdraft facility, most banks use an automated process that takes into account the amount of incoming payments but not their origin, so that credits other than income are also included in the calculation. Banks are now offering a loan on the Internet without proof of income.
This procedure is used for faster loan processing, because it takes time to check the submitted salary statements. The fact that the borrower does not have to enclose any evidence with his loan application does not mean that the bank does not report the income.
The credit guidelines applicable in the EU oblige them to carry out a household bill, so that no bank can forego the demand for monthly income and for regular payment obligations. Of course, the customer must provide honest information in the loan application, even if the bank pays the loan without proof of the accuracy of the customer information.