Loans for poor people cannot be obtained in the normal way. As the saying goes, the bank only lends money to those who don’t actually need it. Nevertheless, there are opportunities for credit in every situation. Read what options are left.
Loans for poor people – a gauntlet run
Any borrower who can prove a secure high income without existing payment obligations at an early age is welcome. The credit institutions are practically opening the door for a young professor or lifetime official. These customers are happy to be given an almost endless disposition. Financing the house is of course also not a problem. An appointment outside of office hours, if necessary also in the middle of the night, for some people everything seems possible.
Loans for poor people cannot be compared with this. First of all, it is extremely difficult to find a possible lender at all. Most credit institutions require a regular and secure income as the basis for creditworthiness. The school has to be clean, life has to run in a regular way. Credit security is a top priority. Poor people can’t keep up. They rely on the loan offers of the specialist providers and mostly also rely on outside help.
Special offers for bad credit opportunities
When looking at the keywords of internet advertising, every person appears to be “creditworthy without hesitation”. It is enough to fill out a small online form. Already – without Credit bureau, with an arrest warrant and even in the course of personal bankruptcy – all wishes come true. The majority of these offers can only be exposed as excessive advertising language. If you want a loan, you have to be able to repay it and provide credit security. Otherwise there is no credit.
Loans for poor people are only possible if the Credit bureau is clean or at most one negative entry that has already been completed is recorded. In addition, at least one of the three following requirements must be met:
– Pledging long-term paid-up life insurance to secure credit
– A solvent co-applicant enters into the liability risk
– High-quality property collateral, for example a property or a motor vehicle, secures the loan
Without fulfilling at least one or better more of these requirements, the loan request remains unfulfillable. The smallest amount of credit can then only be conceivable as a social loan.
The church as a lender
Loans in extreme social emergencies can come from the Church. It is not necessary to think of the Vatican Bank in Rome, but of a pastor’s small budget. More and more parishes are collecting donations to help poor people who are denied every credit opportunity. These social loans are always interest-free.
Loans for the poor can also come from charities at this level. Municipalities would also be conceivable, lending would be permitted, but there is rarely a budget for this.