A small salary is not synonymous with denial of credit, on the contrary, it is the ability to borrow that determines the feasibility of financing and often small wages have a better ability to borrow than loans. higher wages.
Small salary and bank loan
Contrary to popular belief, the small salary is not synonymous with lack of funding, quite the opposite. It is above all the debt and therefore the borrowing capacity which makes it possible to determine the feasibility of a credit and one must not exceed a debt ratio of 33%. Thus, if a borrower has a small salary but has no or few credits in progress, he can finance his project and get a tailor-made offer from financial institutions.
The debt ratio is calculated according to household income and loan expenses. This ratio then makes it possible to determine the maximum amount of the monthly payment of the new credit and allows the financial institution to carry out simulations on different durations. The longer the duration, the more important the amount will be but also the interest, so you have to find a middle ground to get financing adapted to your salary and repayment capacity.
Which bank to solicit with a small salary?
There is no specific bank for low-income borrowers, there are simply organizations and financial institutions offering tailor-made loans, depending on the borrower profiles. If it is a personal project, it is advisable to use the personal loan, an ideal banking product to finance a project without having to justify it. As part of a car purchase from a professional for example, the affected loan will be preferred.
To find the bank or organization that can meet its financing needs, it is rather advisable to use online simulators, these are forms that allow you to submit a single application that will be sent to credit institutions that can offer financing. to the borrower, taking into account his situation and his small salary. The interest is to receive several offers of credits and to be able to compare the proposals, which facilitates the obtaining of the best conditions according to its situation.
Real estate loan and small income
The mortgage remains a complicated financing to obtain but again, it is the ability of the borrower to get into debt that will validate or not the receipt of his credit. It is also advisable to conduct an online simulation to solicit the best banks and obtain customized financing. In the case of a borrower with no current credits and small incomes, the grant will be relatively accessible given the current loan conditions.
For a loan with credits in repayment, it may be more appropriate to consolidate the credits to clear a portion of the debt to devote to the repayment of a debt on real estate, thus facilitating the homeownership. Online simulations provide a quick opportunity to obtain a feasibility notice.