Why do you need your employer? Because the banks want to see their borrowed money back. If you can’t pay the installment because you have no regular income, the bank will only lose by giving you money.
At the same time, there is a way to avoid having to present your employer’s certificate to your bank when you want to take out a payday loan. The latter answer will now be presented in more detail.
There is a reason to request a certificate from your employer
Of course, let’s not go for an important regulation: in 2019, banks are required by law to give you a loan only if you have regular income, as you borrow payday loans without any other cover. If you have a decent income, you can provide proof of employer’s certification to the bank, which then sets a credit limit. If you have a higher income, you can raise a relatively large amount relatively safely, avoiding the risk of indebtedness. Typically, financial institutions can give up to three to four times the amount of income to loan applicants.
Of course, if you think about it, you might find that borrowing without income is stupid, because your debt would just build up, and then you would end up in court. Previously, if we could put it this way, it was fashionable to borrow only a mortgage, so if you had a mortgaged property for you or a close relative, you could get a loan. This is no longer the case today, as income is being tested alongside real estate collateral.
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Employer certification can be avoided, but you will need income
However, you may also have income, but for some reason you do not want to apply for an employer certificate, for example you do not want to take a big hit at your workplace. The good news: it’s hard, but there are several ways to avoid presenting your employer.
Clarify what income the bank recognizes when applying for a loan. We can distinguish two types:
Primary Income: This is your pay as an employee. However, not only this form of work exists. As an entrepreneur, the salary you pay yourself is also a primary income, and in retirement, your pension is your primary income, which the bank takes into account when assessing a loan.
Secondary or ancillary income: these are types of income that the bank cannot value on its own, but can be counted against primary income.
This is how you justify your income if you want to take out a payday loan
So there is an opportunity for you to be credited by the bank for income that does not require your employer, ie not earning your living as an employee. However, remember that it will not work without some certification. If you do not want to prove to your employer that you have income, you have the following options:
- As a pensioner, you can just bring your pension card (master card) to the bank or present a 3-month voucher if you are not a customer and the bank does not see on your bank statement that they are receiving your pension.
- As an entrepreneur, you need to ask NAV for a certificate or a statement that you have no tax debts.
Are you a foreign worker? If you have a Hungarian address, you can get a loan. This requires an income certificate from your employer, which is now accepted by banks in English or German.
In addition, the bank will request a bank statement or phone or license number arriving at your home address for 3-6 months, but may also request extra certificates (for example, in the case of primary producers), if you use the loan purpose more and are justified, you can secure the repayment of the loan by involving a debtor.