Banks offer a variety of financing options for corporate investments. When self-employed invest in their business, they usually do so with loans. However, when it comes to applying for a home loan, the self-employed often encounter unexpected problems. It is usually difficult to get personal loans for the self-employed. Even if the order books are well filled and a corresponding income is available, self-employed are unpopular borrowers. There are even banks that generally refuse to lend to the self-employed. Other banks charge higher interest rates when granting a self-employed loan.
But self-employed also need loans for private purposes. The purchase of a new car, for example, is one of the largest expenditures of private households and is therefore the most common reason for applying for a personal loan. But also the new kitchen, expensive electrical appliances and the modernization of the apartment are often financed with a loan. Finally, the real estate loan is mentioned, the self-employed who want to buy a house or apartment as a private residence, need.
Loan for the self-employed – reasons for the reluctance of the banks
From the perspective of the banks, restrictive lending is easy to explain. Banks prefer borrowers for whom the agreed repayment of installments is likely to occur without any problems, so that the risk of default is as low as possible. Such a view makes economic sense. If a large number of loans are not properly repaid, this can cause serious problems for the bank. As a consequence, the default of loans will have a negative impact on bank customers by raising interest rates.
The Bank assumes a low credit default risk
If there is sufficient regular income and the credit score at RS Credit is as high as possible. An employee who is in permanent employment, can demonstrate sufficient income and has not yet been attracted by negative payment behavior, thus has the greatest opportunity to optimally benefit from the current low-interest phase. He will easily get a loan at favorable interest rates.