The so-called housewife loan is an outdated term. Today these loans are called without Credit Bureau or small loans. The name comes from the time when wives were not working and men were the sole wage earners. The women were covered by the man’s income. For this reason, banks granted the housewife loan so that these women could also afford something. The loan for a housewife can no longer be approved in this way.
The loan for a housewife – the prospects
The loan for the housewife is not only aimed at a target group these days. People who do not have a fixed income and therefore do not have the necessary creditworthiness can apply for the small loan. This also includes people who have a marginal job with a maximum salary of 400 USD. However, only if they are secured in another way.
People belonging to this target group are, in addition to housewives and housewives, single parents, pensioners, students. The loan for a housewife is only given as a small loan with loan amounts of around 5,000 USD. But certain conditions have to be met. This includes, among other things, securing yourself or your partner’s income.
Many non-working women or men want a loan without the partner knowing about it. But most banks say no if they don’t have their own income. The housewife who wants the loan without her partner has to offer the bank collateral.
This can be a guarantor or a transfer of ownership by way of property. There will therefore be no loan for a housewife without a guarantor. However, the chances increase if the earning partner signs the loan agreement.
What should you watch out for?
It is important to pay attention to the individual conditions for housewife credit, and several providers should be compared.
So it would make sense if the loan had a short term. This could prevent the borrower from paying the installments. Because the faster the loan is paid, the cheaper a loan is. However, the term should be chosen so that the monthly installments can be paid without hesitation. A term of twelve months is often offered.
Usually a loan seeker with no income or a low earner cannot show sufficient creditworthiness. To make matters worse, the loan represents a risk for the bank, which the borrower cannot offer sufficient security. As a result, the loan will have higher interest rates than a normal loan. If a second borrower can be provided, the interest rate level will return to a normal level. This can also be a guarantor or valuable collateral.
If you look at the interest rate level, you should examine the effective annual interest rate, because this tells you how expensive the loan really is. It not only shows the loan amount, the processing fees are also shown in the effective interest rate.
Analyze the expenses
Before the loan for the housewife is applied for, an income / expenditure plan should be drawn up. The loan seeker should ask how can I pay a loan and how high can the rates be? He learns this by offsetting the income against the expenditure. Child benefit or child support payments should also be included. Banks do not recognize this as income, but they still flow into the household budget.
Not to be forgotten are the annual costs, you should convert them to the month and let this amount stand. Extraordinary costs also have an impact. That could be reserves for a vacation or an upcoming important repair for the car. The expenses should be planned generously so that all expenses can really be paid.
Find cheap deals
If it is certain that the loan can be paid for a housewife, the loan seeker should look for a cheap provider. The individual providers can be compared with each other using a credit comparison. Providers who do not grant a housewife loan at all can also be eliminated.
If the provider is found, the effective annual interest rate can facilitate the assignment. This interest rate not only combines the borrowing rate, but also all other additional costs. If a favorable effective interest rate can be found, then it is to be expected that the offer is cheap.
The customer should also be careful that special repayments are possible. This means that a loan amount can be paid faster. The special repayments should be free of charge. Those who deal with the individual providers should exercise caution. If a loan offer is offered with ridiculously low interest rates, it could be a dubious provider. For this reason, the loan for the housewife should be compared to several providers.
The housewife loan is generally a small loan up to 5,000 USD and can also be approved without a Credit Bureau query. If the rates are set particularly low, a loan with low income can also be financed. There are providers who approve this type of loan with a monthly income of 500 USD.
As described before, the loan will be expensive despite the small loan amount, also considering the long term. The interest rate can range up to 15%. There are providers who still grant loans even with low income and only legal age and a German current account. Assuming a certain regular income, of course.
However, anyone who has 500 USD a month and is supposed to pay their living expenses, rent and installment is almost an impossibility. For this reason, most banks require a housewife’s signature to be signed by the partner under the loan agreement. If you now want a loan of 500 USD, you could then be approved. The installments would then be the smallest amounts that even a low-income housewife could pay. After all, the 500 USD a month can be household money. The other major financial items are paid from the partner’s income.