Do you need an additional injection of cash and are wondering to what extent your financial situation will allow you to make another commitment? Check how much you need to earn to get a cash loan, and what other conditions you will have to meet.
Conditions applied to get a cash loan?
If you are currently applying for a cash loan, you are one step away from receiving a positive decision, namely adequate creditworthiness. It is on its basis that the bank or loan institution grants the obligation and calculates how much you can afford.
Creditworthiness determines to what extent your financial situation will enable you to pay off the liability and is a guarantee for the lender that you will pay off the loan on time. The amount of income and the form of employment have a huge impact on creditworthiness.
Before issuing a decision, the bank will carefully analyze your financial situation, examining primarily monthly maintenance costs or current liabilities. Also, it will certainly carry out the so-called qualitative analysis of the client, checking your age or marital status.
What is the impact of earnings on obtaining a cash loan?
The amount of income has a large impact not only on the fact of obtaining a loan but also on its amount. Permanent, regular income resulting from an employment contract signed for an indefinite period is the most desirable situation for the bank.
Unfortunately, there is no clear answer to this question as there is no minimum allowable amount set by all lenders. When granting a loan, banks use the data published by the Central Statistical Office, examining how much the average Pole spends a month on all maintenance fees.
For the sake of simplicity, it is assumed that one-person households spend about PLN 1,000-1,300, and each subsequent household member increases this cost by about PLN 800-1,000. What’s more, before issuing a loan decision, the bank checks in the BIK databases whether the person who applied for the loan has overdue debts.
With each additional commitment, the applicant’s earnings must be higher. When setting your minimum earnings, you should also take into account the size of your potential loan. An income of PLN 4,000 should be sufficient if you want a loan of PLN 20,000.
When planning a PLN 100,000 commitment, you should first of all work on the amount of your current income or consider additional work.
The amount of income and the amount of cash loan – what can the customer count on?
As we have already established, there is, unfortunately, no good answer to this question. However, we have prepared a certain simulation of creditworthiness, taking into account three incomes of different sizes: the lowest national – PLN 1,920 net, the national average – PLN 3,830 net, and the amount of PLN 5,000 net.
Earnings abroad and a cash loan – is it possible?
After the S Recommendation came into force, many banks withdrew from their offer credit products for people earning in foreign currency. Fortunately, however, not all Poles who earn their income in euro are not looked at by lenders a bit more favorably.
However, finding the right offer can be very difficult, and the requirements set for the borrower are slightly inflated. A person who receives a salary in a currency other than PLN should demonstrate higher creditworthiness and be able to document his income in detail.
Earnings on a cash loan – what else is worth knowing?
Getting a cash loan from year to year is becoming easier. Many banks have already introduced online applications for both new and repeat customers, so you can sign a contract from the comfort of your own home.
Additionally, offer comparison engines are available, which allow you to quickly compile specific offers of the largest banks and choose the best option for you. The constantly updated ranking of cash loans, created based on the most frequently selected parameters, also comes in handy.
Earned income is a significant ally in the process of applying for a loan, especially if it is high and regular. Financial institutions are happy to make commitments to clients who have an employment contract for an indefinite period, although fortunately, this is not a requirement.
Not only earnings – what else do banks take into account when granting a cash loan?
In the loan process, not only the amount of income affects the final decision. Our credit history is also extremely important, which, contrary to appearances, applies to all credit products.
Therefore, it is worth not to be late with the repayment of overdrafts or limits on your account and remember to pay installments regularly. However, regardless of how high our income is, if the number of our liabilities is,