There are certain conditions attached to the granting of a loan. In this way, the credit institutions want to ensure that the borrower can also afford the loan and that the risk of default due to poor creditworthiness is as low as possible. Therefore, a criterion for lending is based on the income of the borrower. This must be at least 1,100 USD net.
This sum results from the fact that the garnishment allowance for a single person is 1,079.99 USD. This means that any income below this limit cannot be seized in the event of default. Only the sum above the garnishment allowance can be attached. However, only if the debtor is single and has no maintenance obligations.
Many banks and savings banks therefore set the minimum income limit at $ 1,100 net per month. You can find out here how you can take out a loan with a net amount of USD 1,100 per month, what you need to consider and what credit options are available to you in this connection.
A low income – automatically a reason for rejecting a loan?
Even if the banks always insist on a high income, with an income of 1,100 USD you are still not in the area where loans are rejected. Definitely not if you are single and you are modest in terms of the loan amount and the term. Many consumers have low incomes and still have to see how they can best shape their lives. And that includes taking out a loan if necessary.
You can therefore easily apply for a loan with 1100 USD net per month. Provided you are modest and can show good private credit checker.
Which loan type is best suited?
You will have the least problems with taking out a loan of USD 1,100 a month if you choose a consumer loan. So, for example, if you decide to buy a new TV and want to pay for it with the help of financing from the dealer. The dealer will not ask you for proof of income, but will only inquire whether you have any income. If these are over 450 USD a month and you have a good private credit checker, nothing stands in the way of a loan with a net value of 1100 USD.
A simple installment loan as a loan with a net price of USD 1,100 is also quite feasible. Here, however, proof of income must be submitted and information regarding the living conditions must be provided. The bank then decides individually whether the loan application can be granted.
What to do if more money is needed
If you would like a loan with a net amount of USD 1,100 a month that goes hand in hand with a larger loan amount, you will only be able to borrow it if you are looking for a second borrower. In other words, a person with whom you submit the loan application. The second borrower must have a higher income than you to justify borrowing.
On top of that, it is always good if you can still offer additional collateral to the second borrower, such as property-building insurance. Or you decide to take out residual debt insurance. However, this is only recommended if you have no further collateral, since it is quite expensive and only unnecessarily increases your monthly installments.
The best way to proceed with borrowing?
Do not necessarily go to the house bank if you are looking for a loan with 1100 USD net per month. This knows your financial situation and could therefore be somewhat biased. Especially when the money is just enough each month.
Better take a look at the internet for interesting offers. Use a comparison calculator to compare various offers and to find a loan with a good effective interest rate. Try to keep the monthly loan burden as low as possible. You don’t have a lot of money, which therefore has to be divided particularly well. If in doubt, always opt for the smaller loan amount, which offers less scope, but keeps the risk of debt lower.