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Jul 26, 2017

Short Term Loan Eligibility The Role of Income

Short Term Loan Eligibility The Role of Income

You need to have a source of income to qualify for short term loans. There is no exception to this rule regardless of the choice of lender. You may apply for unsecured short term loans that are available for borrowers with poor credit but you would still need a proven source of income. Claiming you have regular income will not suffice. You would need to prove the status of your employment, self employment or if you are in business. You would have to furnish pay slips or bank statements to prove your income.

Job security or any such aspect pertaining to stability of income doesn't figure as importantly in short term loan eligibility as it does in home loan or car loan. You don't need to be in a very high paying job or have a job with lifetime security, if there is one. As long as you can prove you have been employed or in some kind of profession for a few months and that you have been earning a steady income, which may even fluctuate a bit but not to an extent of not earning anything or making very little money which is barely enough to survive, you would qualify for short term loans.

It must be noted that the income will directly influence the amount of money you can borrow. Someone with a part time job and earning minimum wage cannot apply for a few thousand. Someone with an irregular income will also have to apply for the least amounts available from a lender. The net income determines the loan amount you can qualify for. Do not apply for loan amounts that will be rejected based on your income. Do the math and ask for a reasonable sum of money. This will speed up the approval process and you would help your short term loan eligibility.

Things That you Did Not Know About a Short Term Loan
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