Can You Get A Loan In 2019 Without An Employer Certificate?


    Let’s start with the most important! 2019 hasn’t changed, financial institutions are still required by law to ask you for an employer certificate if you want to take out a personal loan. But why? Because you have to set a so-called credit limit and the creditor (the bank) can calculate it based on your income. So, unfortunately, it’s almost impossible to get a loan without your employer’s certification, though there may be loopholes.

    Everyone can get into a situation where they need money very urgently. In such cases, a personal loan can help. Your application requires an employer certificate. But you can’t show it because you don’t have any income. However, this is a very important document for banks. Your income from work is the only guarantee that you will be able to repay a non-mortgage loan.

    Personal Loan Employer Certification – What about Small Loans?

    Personal Loan Employer Certification - What about Small Loans?

    This is not only the case with personal loans, but with all other loan products, you need your employer. It doesn’t matter if you need a personal loan of under $ 100,000 or millions. Banks will only be able to evaluate your loan application positively if you have regular net income, which can be used to set a credit limit.

    You’ll find this type of loan product at almost every bank: along with Good Finance, Goodbank and E-money, you might want to look around, just to name a few, but you’ll need proof of income everywhere. Since these loans are most often unsecured, the bank can only rely on your payment to pay off your debt. Therefore, often the actual minimum wage is not enough, but banks expect multiple repayments to comply with central bank regulations.

    And where do I get my income from? What does the bank accept for credit assessment?


    The bank identifies two sources of income when estimating your earnings:

    • for example, your primary income is the salary you get as an employee, your retirement, or the entrepreneurial salary you give yourself.

    • secondary income such as various social benefits, GYES, GYED, scholarships, dividends, equity, etc. These are also referred to as supplementary income and are never accepted by the bank as such in credit assessments.

    Documents needed for applying for a loan: Take these to the bank with you

    Documents needed for applying for a loan: Take these to the bank with you

    So you have not run out of options without your employer’s certification , because this is just one way to prove income to the bank. However, your income must always be verified. Here’s what we need for primary sources of income:

    • As a pensioner , you can provide proof of your pension through a pension record or bank statement that shows your payout for at least 3 months. If you have three pension vouchers, that’s okay.

    • For entrepreneurs, the NAV issues a certificate of income and a document stating whether they have a debt to the tax authorities. You can only get a loan as an entrepreneur if you have no tax debts.

    • Hungarians working abroad need a certificate of income issued by a foreign employer, which most banks already accept in English and German.

    In addition, your financial institution may ask you for specific documents if you feel you need more information. These include, for example, the balance sheet for entrepreneurs for the previous year, and the various licenses for primary producers, to name just two.

    Therefore, when applying for a loan, it is worthwhile to prepare these documents along with your identity documents in order to ensure a smooth administration.