In life, most of us end up in situations where we need more money than we have available. The car may need to be repaired at a time of little or no income, or you may suddenly have to buy a new washing machine because the old one takes the evening.
A consumer loan can be a good solution in many situations and can give you a neat and predictable loan.
You will receive a clear repayment plan with fixed installments, which means that you will pay back both installments, fees and interest each month.
When you submit an application for a consumer loan, you will be asked to provide information on today’s income and a credit check will be performed. As a rule, it is the last three years’ income that will determine the amount of loan you will be granted. Most people have a fixed income they can refer to, but it is not necessarily a requirement that you can submit a paycheck in order to be granted a consumer loan.
If you are unemployed or on work-clarification money, you will not receive a consumer loan , but if you are disabled, it may be good to know that your benefits also count as income.
Disability insurance as a loan basis
If you have an injury or illness that causes you to have permanent impairment of income, you are entitled to a disability pension.
You will then be paid full or graded disability insurance twice a month as compensation for lost income. The ability to make money by working alongside the disability insurance is, of course, very limited, and although payments from NAV are stable, you may need to borrow money if unforeseen expenses arise.
A consumer loan can then be a good solution, and even if you do not have a paycheck or a permanent job, the fixed payment of disability insurance can show that you have the ability to pay and can pay off a loan. Disability benefit is considered equal to regular pay, and it is the amount you get paid each month, and the payments over the last three years, that determine how much you can borrow.
Student or unemployed?
If you are a student or between jobs, we do not recommend that you take out a loan. Rather wait until you can demonstrate three years of income and a good ability to pay, so that you do not get into debt without having a good plan for how to repay the loan.
If you still need to borrow money, one solution might be to take out the loan with a co-borrower. If you two are taking out the loan together, both will be legally responsible for the loan, and both liquidity and creditworthiness will form the basis for the loan terms you receive.
You can apply for a consumer loan even if you are self-employed and do not have a fixed salary. Instead of providing information about your regular income, you submit your tax return and your business statement, or refer to your financial statements so far this year when you apply.
Think through this
Even if you do not have a fixed income, it is always important that the loan repayment amount is repaid at the agreed time. Do not take out a higher loan than you can manage and agree with the lender on a repayment plan that is realistic.
And if you have trouble servicing your loan along the way, contact the lender as early as possible to get a payment arrangement in place.