Have you ever been asked for a proof of income? Do you know what it is and what is it for? We bring you all the answers.
For any procedure relating to a financial request, whatever its nature (application for allowances, credit, etc.), it will be required to submit a proof of income . Let’s take stock of this reference voucher.
WHAT DOES NOT MEAN PROOF OF INCOME?
A proof of income is intended to identify the resources received by the holder.
Different documents can be presented, some being more complete than others.
The pay slip
The payslip issued by the employer indicates the amount of salary paid to the employee. It is a proof of income from a professional activity.
Note : on the payslip will also be specified the nature of the contract of employment of the employee concerned (CDD, CDI), which can be an important mention for the recipient of the proof.
The tax notice
This document is issued by the tax authorities to recover the income tax . The advantage of this document is that it consolidates all the revenues collected.
Thus, for people who have different work contracts ( part-time for example), who receive income from capital, this document is the most complete.
WHAT IS THE PROOF OF INCOME?
Revenues and borrowing
Proof of income may be required in many situations, including the solicitation of a bank for the granting of a home loan .
Once there is a loan, there is repayment, and before lending funds, banks will inquire about the financial solvency of the applicant. An inventory of his income will be the first formality requested.
In addition, the amount of income that will be presented at the time of the credit application will make it possible to determine the borrowing capacity according to the rate of indebtedness .
Income and benefits
Informing financial assistance providers of the amount of their income is the condition without which no financial support can be granted.
These elements will be required to assess the allocation of CAF aid for example.
The direct link between income and financial assistance results in an obligation for the beneficiary of these benefits: any change in the situation must be notified to the body paying the benefits.
To know : if your situation has evolved and your proof of income can no longer attest to the reality of your situation, approach your interlocutors (banks, CAF advisors, …) to see how to take into account your new conditions (ex : income of the previous year taken in reference whereas since there was loss of employment, separation, …).
CAN WE BORROW WITHOUT PROOF OF INCOME?
The principle: no borrowing without proof
It is not possible to borrow without proof of income except for rare exceptions: this will be the case especially if the loan application is made from an institution that already knows the financial situation of the applicant.
Beware : the personal loan is often called a loan without proof , but this is the lack of evidence related to its use. The beneficiary does not have to explain the destination of the sums borrowed but will not be exempt from presenting a proof of income.