Typically, lenders require submission of a pay slip because they want to verify the stated income. In some cases, the loan is issued without a pay slip because there is other security or the desired quick processing precludes a careful examination of the wage statement.
Waiver of wages due to other collateral
With the overdraft facility, the bank effectively grants a customer a credit without a pay slip in the checking account. The regular incoming payments on the account, which do not necessarily consist exclusively of wage payments, serve as security. Most financial institutions have automated the calculation of the overdraft facility and do not differentiate between the reasons for incoming payments.
Even when applying for a credit card, the wage certificate is only requested in exceptional cases. Credit card applications are one of the few cases in which bank information is also obtained from private customers. In addition, credit card issuers limit the card limit for new customers. If these apply for an increase in good time, credit card companies will subsequently request proof of wages.
Even a car loan can be obtained from the dealer and the car bank without payroll; However, the prerequisite is that the buyer pays about a third of the purchase price as a down payment, thereby proving his good financial situation. The classic loan without payroll is the pledge loan. The income of his customers is unimportant for the pawnbroker, because only the deposited deposit serves as security.
No payroll to simplify processing
Mail order companies and some supermarkets usually allow their customers to pay in installments without submitting a pay slip, and they deviate from this for large sums. As a modern loan without payroll, online banks offer an instant loan. Here, the submission of income receipts is waived due to the fast processing promised to the customer, because the money should be received in the customer’s checking account within two bank working days.
Both the waiver of the submission of the wage statement and the quick loan processing can be paid for by financial institutions, so that an immediately processed and quickly paid out loan without a pay slip is somewhat more expensive than a loan with normal processing time. So that the borrower does not pay too much interest, he compares the offers from different banks.
It should also be borne in mind that lending without payroll does not mean that the bank does not demand income. Financial institutions must always inquire about the amount of the wages; in the case of a loan without a pay slip, the bank relies on the accuracy of the information provided by the borrower.
For them, there may be a temptation to declare an income that is too high in view of the fact that the pay slip is not requested. In this case, the loan is likely to be successful, but the incorrect information will result in criminal consequences if the loan is not repaid in accordance with the agreement.