Banks do not perceive self-employed citizens as reliable borrowers, so they do not develop separate programs for them. At the same time, in a general manner, this category of citizens can apply for several types of loans.
The easiest way is to get a consumer loan without certificates for self-employed or get a credit card. There are many offers from banks that hold such transactions without certificates confirming income.
Paydya loans are no less in demand among self-employed. To get a small loan, it is enough to have an ID. Permanent citizenship is required.
More difficulties will arise with the issuance of car loans or mortgages. Banks are reluctant to enter into long-term transactions without confirming the client’s solvency. Typically, such agreements are drawn up with tougher lending terms and the involvement of guarantors.
A self-employed loan is a loan issued for personal or business goals for self-employed people. Such people may count on several types of loans offered by different lenders:
Personal loans: every client may leave an application for this type of loan. The big advantage lies in that you do not need to secure the amount you’re going to borrow. To apply for a personal loan, you will need a good credit record.
Business loans: Every client may apply for this loan type especially if you face a problem in supporting your business. The official lender will check your business accounts to help them make up their minds whether to lend to you to support your small business.
Secured loans: This loan is characterized as a kind of personal loan imlies security against the loan cost, and generally offers lower rates than regular personal loans. If you’re self-employed, such a loan may be a better option to cope with your financial problems.
Guarantor loans: This option is appropriate when you need funds but have no enough credibility. You should attract a friend or family member with a good credit score. He/she will be a guarantor for the borrowed loan amount. This implies that if you miss payments on a due date or are uncapable to repay the loan back, your guarantor has to pay it in the limited periods of time. The interest rates on such a loan is higher in comparison with a consumer loan.
Is a loan issued to the self-employed if he/she has no proved income?
If the income is very small, then the following factors can help you get a loan for the required amount:
- a self-employed has a real estate or land with certificates proving this fact;
- a self-employed person has a perfect credit history;
- there is a person with a confirmed income who is ready to act as a co-borrower or guarantor for a loan.