In most banks and financial institutions, we can get loans and credits by properly documenting your income. What sources of income are accepted and how can we document them?
Many of us think that getting a loan or loan is only possible if you have an employment contract signed for an indefinite period. However, lenders also accept other sources of income. Of course, each of them has slightly different requirements and methods for calculating the creditworthiness of their clients, so it happens that in one bank we can get a loan, while another will issue a refusal.
When should you document the income when taking out the loan?
Documentation of income refers in particular to loans for larger sums. In the case of those up to the amount of about PLN 10,000, we usually do not have to provide the loan company or the bank with any documents confirming our income. We must write a special statement for this in the application. We contain information about our income and their sources.
Remember, however, that such a statement may not always be sufficient. When a bank or loan company is not completely certain whether a customer is trustworthy, you may be asked to provide relevant documents.
Examples of accepted sources of income:
• contract of employment
• civil law contract – for a work, commission
• economic activity
• income from the farm
• benefits: retirement, pension
• renting a property
Of course, we should remember that not every bank or loan company accepts all of the above sources of income. Usually, their list can be found on the lender’s website.
How to document the income achieved?
To demonstrate that we achieve a certain income, we must provide relevant documents. They depend on where we have influence.
For example, in the case of employment contracts and civil law contracts, we will need copies of contracts or a certificate from the employer showing the income achieved. In the case of benefits such as old-age and disability pensions, we show a document confirming your income, a certificate of valorization, a retirement section or a decision to award such benefits. In the case of business operations, the borrower is often asked to provide documents confirming the financial condition of the company. Sometimes it’s just enough to send a bank account statement for the last few months.
Most often, when a bank or a non-bank company asks for additional documents confirming income, we also receive information about the documents. Sometimes the lender also provides a model document in which to obtain the income obtained.
In summary, if we want to take out a loan, we must remember that a bank or a non-banking loan company may ask us for documents confirming our income. Thanks to them, we will be able to document your financial situation and receive money more easily.