There are loans for individuals without proof of income. It is hard to see a lender providing a loan without requesting an evident of source of income. This is also known as no-income loan, where some lenders do not ask you to provide information on your income. They rather rely on proof that can determine that you can repay the loan without any income from your work.
How loans without proof of income works
Just like any other loan requirements, you are expected to provide certain documents and details that will determine your qualification for loan. However, in this aspect, proof of income or your income details are out of the question.
Borrowers must provide other proofs or documents that can shows they can repay their loan and interest on time and according to the loan term. As a substitute to no proof of income, bank account information, credit score, asset or property, other source of income (e.g. income proof of your spouse) as security are considered.
Also, with the help of a guarantor you can get a loan when there is a guarantee that, the co-applicant will take full responsibility of the loan payment when the main borrower fails.
How to get loan with no income verification
It is very rear to see lenders providing loans without proof of income but it does not mean this is impossible. Lenders who provide such loan have their way around or alternative document checks.
For instance, credit score is one of the main criteria you can have advantage of. When you have a good or better score of 580 FICO and above, lenders believe you can pay your loan accordingly. They use this form of criteria to check the creditworthiness of the borrower.
Others also rely on collateral as security when there is no proof of income or there is bad credit. Lenders will rather prefer you bring a property or asset in exchange for a loan. When borrower fails to repay and the ends up in default, the lender can sell the asset to cover up the loan amount.
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