Anyone considering a loan has certainly come across the term loan without a register, or also loan without proof of income. Verification of the client’s ability to repay the loan is an obligation imposed on lenders by the Consumer Credit Act, so the name is a bit inaccurate. A loan without proof of income is slightly more accurate. You can also arrange a long-term loan without a register in this way, where you spread the loan over the maximum possible repayment period.
When to apply for a loan without proof of income?
When you need a quick loan and don’t want to or can’t provide proof of income, a loan without proof of income is the only way to go. But getting a secure loan without a registry will be a little more complicated, and you’ll have to put up with higher interest and a shorter repayment period.
Proof of income
The lender must be sure that you will be able to repay the loan. As part of the application process, you must provide proof of income. However, expenses (rent, other loan repayments, insurance premiums, etc.) are also important for the client’s creditworthiness.
The granting of credit is also linked to accessing the debtors’ register, which is a database of persons and companies that have not properly fulfilled their obligations. In the Czech Republic, for example, the Bank Register of Client Information (BRKI), SOLUS and the Central Register of Debtors are used.