Depending on the definition, not only day laborers and students with part-time jobs, but also wage earners with very different hours worked per month count as borrowers with no fixed income.
The monthly earnings of freelancers and the self-employed are also subject to large fluctuations, so that their income cannot be described as fixed, or only if a monthly average is formed. In no case is a non-fixed income to be confused with the receipt of no income, and a fluctuating monthly income does not necessarily have to be low. An instant loan is characterized by the loan payment within two bank working days.
The instant loan is advantageous for applicants without a fixed income
An instant loan without a fixed income is more likely to be obtained than a loan with processing time that is customary for banks if the bank also refrains from submitting proof of income due to the rapid processing of applications. This procedure can be found when the loan amounts are not too high, since the usual loan documents can only be checked superficially or on a random basis.
With regard to income, the loan applicant may not deliberately gloss over the information, as this is regarded as a reason for the bank to terminate the loan and may have criminal consequences. However, he may calculate the individual components of his monthly fixed income and form an average of them.
In the case of loan applicants who are partly co-financed by their partner, it is generally acceptable if they also take the value of the benefits they received without cash into account when calculating their income. If the bank provides information for calculating the average income, the borrower must take this into account. If the financial institution requests proof of income for an instant loan, the applicant will provide proof of all incoming payments in the past few months.
Keep the amount of the monthly installments manageable
In the case of an instant loan without a fixed income, the loan applicant must keep an eye on the amount of the monthly installments. These are payable not only in months with average income, but also in phases of weaker incoming payments. In the case of an instant loan without a fixed income, the monthly installment to be paid should be paid from the minimum payment received in the past six months.
A contractual agreement is ideal, according to which the borrower can make additional repayments at any time for his instant loan with fluctuating income. In this case, he voluntarily pays in a higher rate than necessary in months with above-average incoming payments and thus balances the loan taken out prematurely.