Due to the favorable terms of the payday loan it is very popular nowadays. The loan can be freely spent on anything, no need to specify the purpose of the loan. You do not need real estate collateral to apply for it, income is something that the bank scrutinizes when borrowing. Interest rates are very favorable, they have never been as low as they are today. A credit assessment will only take 3-4 days if you have the proper documentation, but there is also a credit institution where you can have the amount of credit requested in your account within a few hours if you meet the bank’s requirements. Usually you can apply for a few 100,000 forints to 10 million forints with a low starting cost. Cheap payday loans – How Do You Get It? Show!
Cheap payday loan – The most important thing for the bank is income
If you are applying for a payday loan, expect the bank to be very strict about the amount of income required by their requirements. One of the first questions is how much of your income can be justified. It is very important that it is verifiable! It is in vain for you to earn multiple times your verifiable income at your workplace if you cannot provide any documentary proof. That bank doesn’t care. They only accept income that they can justify. This is understandable as it will be a guarantee that you will be able to repay the loan in the future as no other collateral is required to take out the loan. 30-40% of your income can be a monthly installment.
Generally, you must have at least a minimum wage to apply for a loan, but this criterion may vary from bank to bank. It is up to each credit institution to determine the amount of income needed to apply for a loan. However, in which all banks agree that the higher their income, the more favorable the loan structure can be.
Earning conditions vary depending on whether you are employed or self-employed:
- If you are employed as an employee, you must have an employment relationship of indefinite duration of at least 3 to 12 months, but this varies from bank to bank. Most credit institutions accept foreign wages, but they must have a home address or tax card.
- If you are an entrepreneur, ie your income comes from your own company, you must provide the bank with at least one closed business year.
- Banks also accept old-age retirement pensions as income, but not disability and accident pensions, because this is officially recognized as a benefit.
Cheap payday loans – How Does Age Affect Borrowing?
Banks generally have a minimum age of 20-23 years and a maximum of 70-75 years. If the borrower does not meet the age requirements, the credit institution may request the involvement of a debtor in the credit transaction.
Cheap payday loan – Required Documents
Employee income requires proof of employment from the employer. In the case of a foreign employment contract, both the employment contract and the employer’s certificate are required.
NAV Income Certificate, NAV Non-Debt Certificate
As an entrepreneur your income can be proved by a certificate issued by the NAV. Depending on the form of taxation (KATA, EVA), the bank will take into account some or all of the amount stated in the NAV certificate.
Bank account statements, utility bills
A bank account statement of at least 3 months is required when applying for a payday loan. The bank will check what references it makes, how much you use your credit line, and whether you are paid by salary.
If you receive your payment in cash, you do not have an account statement. This does not preclude borrowing, but requires the payment of a declared employment and public charges. You will still need a NAV income certificate for the previous year and your employer certificate, but this may vary from bank to bank.
Cheap payday loans – How to Get Discounts?
The higher your income, the more favorable the loan you can get from the bank. With earnings above $ 500, up to 7% offers are available.
Income received by the bank
Banks can give discounts even if you open an account there and get your income there. It’s also worth looking at the costs of your account, as they can be very high in the future and may not be worth the action in the long run.
Active account usage
In exchange for favorable terms, the bank expects the bank account to be actively used. In other words, you have to fulfill some orders. These may include wire transfers, some direct debit orders, etc. If these are not met, unfortunately the discount is not due.