How to request loans without payroll

When someone wants to apply for a loan and is not employed by a company – self-employed workers, retirees… – but does have another type of stable income, it would be convenient for them to know how they can request loans without payroll. This modality not only exists, but there are currently numerous entities that offer it, although not all of them have the same advantages for their potential clients.

Generally, when we talk about loans without payroll, we tend to refer to personal loans and consumer loans. In the words of the Bank of Spain, these products “They allow financing the acquisition of durable goods (a car, furniture, etc.), paying for a master’s degree, taking a trip… They are usually easier to obtain than a mortgage loan, although they are more expensive because of the interest that must be paid when bank are higher” . To this he adds that “Personal or consumer loans are formalized in a contract that establishes the amount granted and the periodic installments that we will have to pay, which include interest, commissions and expenses in accordance with the agreed conditions“¹.

What to know about personal loans?

In addition to what has been indicated, it should be noted that Law 16/2011, of June 24, on consumer credit contracts² It includes the regulations that regulate personal loans, whether or not you have a payroll. A good example of this are the rights of the person who acquires the credit, which can be summarized in the following points:

• Right to specific and detailed information³ of all the concepts that make up the loan (total amount, payment terms, monthly installments, interest applied, the TIN and the TAE that apply…).
• Right to early repayment of capital⁴ that makes up the loan. In this situation, the entity that acts as a lender can establish a commission for partial and/or total repayment.
• Also, prior to hiring, the applicant has the option of requesting a binding offer⁵ which must be maintained for a period of fourteen days, in which you can compare it with those of other entities. In addition, once the definitive contract has been signed, you will have another fourteen calendar days to withdraw from the operation without the need to offer explanations.

How to request personal loans without payroll?

Exposed what the law marks, it is time to know how to request personal loans without payroll. What’s more, there is even the option of requesting loans without a payroll or guarantee, although in these cases, the amount granted may be lower and the interest higher, since there is a greater risk of non-payment by the applicant.
As for the steps to follow to be able to request a loan without payroll, they are these:

1. In some cases, the bank that provides you with the loan will ask you to open a checking account to deposit the requested money. And OpenbankFor example, no need to open a checking accountso you won’t have to change banks.
2. In addition, the following requirements must be met: be resident in Spain and of legal age, that the sum of the age plus the term does not exceed 70 years (in the case of Openbank).
3. Provide the necessary documentation. If you request it at Openbank, we will only need your ID and that you provide us with the details of other accounts you have at other banks in order to study your request.
4. The next step will be decide both the amount that you want to request in the loan, and the number of installments in which the capital plus interest will be returned. For this, the most appropriate is to use a simulator, since it will offer a better perspective of the resulting scenario.
5. Not all entities offer the same amounts or the same terms. What’s more, you have to take into account the interest that is going to be paid, which tends to increase the more risks the lender is going to run. As an example, we can point out that Openbank offers from €3,000 (minimum amount) to €24,000 (maximum) in terms ranging from 12 months to 5 years. These figures can vary considerably, depending on the type of entity that is consulted and the type of product with which it is working.

As can be seen, the steps to request a loan without payroll are not complicated. And it is that, contrary to what some users may think, there is a whole world of options for those who are not employed in a company or organization but do have a stable income.

Moreover, as we said at the beginning, even if you have a payroll, it does not have to be domiciled where you receive the personal loan.

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¹Personal loan and consumer credit | boe
²Law 16/2011, of June 24, on consumer credit contracts
³Law 16/2011, of June 24, on consumer credit contracts | article 12
⁴Law 16/2011, of June 24, on consumer credit contracts | article 30
⁵Law 16/2011, of June 24, on consumer credit contracts | article 8

This article has not been exhaustive and is purely informative, and does not imply any kind of advice or recommendation on the part of Open Bank, SA. To confirm the information, go to official sources of information or consult a professional. Open Bank, SA declines any responsibility for the issuance of this article.

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