subject: Self-Certified Loans Are Possible To Obtain by:Alisdair Cosgrove [print this page] When self-employed people are seeking financing, they may be seen by the lending institutions to be a borrower of higher risk because they have no way to demonstrate that they have a steady source of income. The lender who takes the risk of granting a loan to a person who is employed through their own means, is uncertain about the loan being repaid. With the self-certified personal loan, this type of obstacle has been overcome; if you run your own business or have certified accounts and no traceable proof of income, you can still get financing on a secured or unsecured self-employed loan.
A self employed person may be rejected on a personal loan application because they are unable to present any documents to visibly support the amount of income they have and this makes them appear to be an unfavorable choice for the loan.
Self-certified loans are not used in combination with any proof of income for the purpose of arranging loans or mortgages; loans such as this enable you to declare your current or expected income without financial documents. You will just have to make a simple declaration of your intent to repay the loan on time in a signed statement.
Self-employed borrowers, as a general rule, have to provide documented proof of their income of the past two or three years to show that they can repay the loan.
Sometimes it is very difficult for a self-employed person to provide proof of income, however, the self-certified loans were introduced to help people who lack the benefit of having audited income proof. A free quote is easy to obtain before you apply for the loan and this will enable you to know if the loan is affordable to you, and you can then enjoy the provision of self-certifying your income to enable you to borrow as much as you need.
Self employed borrowers can choose to obtain a secured self certified loan as a way to offer more credibility to the lender. Self employed people can have more of a restriction on which forms of security they are allowed to use and they are unlikely to be covered for unemployment unless they stop operating their business.
A self employed borrower can also use a debt consolidation loan to combine their debts together and get rid of any bad debts that they are tied to. A home improvement loan, a new car loan, a vacation home loan or a poor credit loan can all get paid off with a debt consolidation loan.
If you are finding it difficult to prove how much you earn, there may be a self employed or self certified loan which can be available to you.
Along with the benefit of knowing you can self certify your income, you may also enjoy some of the benefits in the terms of the loan, just as the employed borrower may. With a self employed or self certified loan, it is possible to borrow against equity and free up the cash to do almost anything you want to do. It may be possible for you to pay off all of your credit card bills and left over utility bills and possibly take a bit of time to take your spouse somewhere special and relax.
The business owners, who are self-employed, are greatly benefited by the opportunity to obtain funds without providing proof of income, through the option of the self-certified loan.
About the author
Alisdair Cosgrove is an expert in the field of personal finance in the UK and has been writing articles on the web for many years and can find more of his information at the UK site Glitec.co.uk, offering cheap loans and also a great deals on unsecured loans. Visit Glitec.co.uk today for a great loan offer and to read more articles from Alisdair.
