It is not possible in Germany, but also in other countries, to obtain a loan without demand from the bank and to obtain the required proof of regular income. A bank always has to secure itself, which is why it will of course also ask if the proof of income is not attached to the loan application as required.
Important factor in the loan application
If the borrower refuses to prove his income through bank statements and the employment contract, the rejection is almost automated, since the bank then automatically assumes that there is no income. As a result, the attachment of the proof of income is an important factor in the loan application, because without it no loan will be paid out. A loan without demand for additional collateral only applies if the income is already sufficient.
If the income alone is not sufficient to adequately assess the creditworthiness, the borrower is asked on the part of the bank to include additional collateral in the loan agreement. This can be, for example, a guarantee in which a guarantor is liable for the debtor through his income and attachable assets, but also a property that has been paid off, his own home or a car with the highest possible garnishment value.
This type of collateral is not uncommon for banks, and although the property, or at least part of it, usually changes to the bank for the duration of the loan, the borrower remains in full possession of the collateral.
No credit without demand
In Germany, it has only been possible to get a loan “just like that”, especially since the financial and banking crisis. Banks now tend to issue loans under even stricter conditions than before, which is why it is elementary for the borrower to be able to prove their financial situation. The financial situation should of course also be positive in relation to the loan, otherwise, of course, it will also be rejected.
A loan where there is no demand for proof of income and other collateral can usually only be found in the private environment. Loans are more likely to be lent on the basis of friendship or family relationships, but not in order to achieve a return. As a result, these loans are usually agreed without an additional payment of interest.
In this case, the borrower only has to repay the borrowed amount in full, with the advantage that the conditions can often be adjusted variably. This gives the borrower the greatest possible flexibility and still receives the amount he desires. Whether a personal loan is an option naturally also depends on the financial situation in your own environment.