Whenever a self-employed or informal worker needs a loan, many questions come to mind: How to get it without a signed third party? No paycheck? What do I need to do to get a freelance loan?
Fortunately, the options grow more and more. The advance of information technology and the high level of informality in the labor market motivate banks, lenders and lending companies to expand credit options for these workers.
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Typically, your bank statement can serve as proof of informal income. Placing an asset as collateral (such as a vehicle, property, or jewelry) can also be of great help.
But beware! Things get much harder if you have a dirty name in the square. In addition, it is desirable to have an active and moving bank account, preferably over six months old.
Freelance Loan: The First Step
The first step to getting a freelance loan is to research. You need to find the lowest interest rates, deflect fraud and plan realistic installments that actually fit your monthly budget.
In this part, we can help you a lot! Have you tested our loan comparator? Just click the button below!
Our simulator, besides showing you the cheapest loans, won’t let you down. After simulating your loan, you can check out step-by-step tips on how to borrow from the bank of your choice!
For more tips on planning for a loan, click here.
How To Get A Freelance Loan
In addition to the traditional way of going to an agency and asking for a manager, we’ve listed below seven ways to get a freelance loan:
Real Estate or Vehicle Refinancing
This option only works if you have a property or vehicle under your name.
This is a secured loan (in this case, a property or car is pledged in case you do not pay your installments on time). How is the bank sure that it will receive your payment (at worst it sells the good? debt and repay the debt), you will get very low interest rates.
In addition to having a low interest rate, the amounts provided by the financial institution are usually high and the payment period can also be quite long. The loan amount often reaches up to 70% of the collateral and 20 years to repay.
So it’s important to make it clear: If the debt is not paid, you will lose the good. So only use this option if you have a good plan and are sure you can pay off the debt.