Credit with a pay slip – difference between a payroll loan and a payroll loan

The pay slip, just like a pay slip, certifies the work income of a dependent employee. The colloquial language often uses both terms synonymously. However, wage earners experience that there is a difference between a payroll loan and a payroll loan.

The difference between payroll and payroll

The difference between payroll and payroll

The salary is the same every month, only supplements are possible for overtime work or for exceptional work on public holidays. The wages, on the other hand, are calculated on the basis of the hours actually worked plus the statutory wages for continued wages on sick days as well as during holidays and public holidays. This inevitably results in monthly differences in wages for wage earners. Another peculiarity, which makes the application for a loan with a pay slip even more difficult, is the increasing agreement of a minimum working time of less than the usual hours worked.

This form of employment contract design, which was originally developed in call centers, transfers the risk of a lack of orders to the employee and basically deprives him of the option of receiving short-time allowance as long as the contractually guaranteed minimum hours are not exceeded. With this model, the additional hours worked do not appear as overtime on the pay slip, since they are paid with normal wages without surcharges.

The bank loan with a pay slip

The bank loan with a pay slip

Since wage income is subject to monthly fluctuations, many financial institutions do not grant a loan with just one pay slip, but require submission of the pay slip of at least three months. It is positive for the loan seeker if the bank uses the average wage of the period to be proven as the basis for the decision. More widespread, however, is the implementation of the budget statement with the lowest documented income, from which financial institutions deduct recognizable remuneration for overtime.

Some financial institutions calculate the income down to this small number of hours when agreeing a minimum working time in the employment contract, so that lending is hardly possible without another applicant. The co-applicant ideally earns a regular salary or at least has a classic full-time employment contract when receiving wages. In some cases, financial institutions generally reject wage earners as customers for installment loans because of their fluctuating monthly income. Few financial institutions, on the other hand, require submission of a pay slip for the granting of a disposition loan. Rather, they are content with the easily comprehensible regular incoming payments, whereby they accept the fluctuations in the exact amount that are unavoidable when wages are received.

Alternatives to bank credit with a pay slip

Alternatives to bank credit with a pay slip

Mail order companies and brick-and-mortar stores only require proof of income for payment in installments if the purchase amount is high and in this case usually accept a pay slip. A loan with a pay slip can also be applied for on websites for arranging loans between private individuals. Depending on the chosen mediation platform, proof of income may be required or its submission or non-submission may be left to the decision of the loan seeker. The private lenders receive information about the submission of the income document, whereby a pay slip as well as a pay slip is accepted. In the exact description of the loan request, it makes sense to mention the employment status as a wage earner.

The reason is that private lenders are aware of the difficulty of borrowing from conventional banks and that they prefer to give a loan from affected applicants for social reasons. The most important thing is to specify the intended use, since many private lenders primarily make their decisions based on whether they personally consider the use of funds to be eligible.

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