Credit without collateral

To fulfill your dreams you need money. Whether a dream trip, a new, energy-saving refrigerator or whether the child urgently needs a few new clothes. But not always you have saved so much money that you could afford all this immediately. Here, loans offer the opportunity to fulfill wishes, even though you do not have that much money in one account. To be able to take out a loan with a bank, certain conditions must be met.

One possible precondition for granting a loan is proof of collateral. Under collateral, the Bank understands home ownership, a house or a property, but also life insurance or home savings. On such a security then a mortgage is taken. If the client can no longer pay the installment of his loan, the bank can resort to the collateral and get back in this way their money back. But what to do if you can not have any such collateral but would like to take out a loan?

Credit without collateral

Credit without collateral

To get a loan without collateral, there are different possibilities. The easiest is certainly if you can prove a regular salary from an employment outside the probationary period. The longer you do the job and the higher the salary, the easier it is to get a loan on good terms, which means, among other things, a low interest rate and good repayment terms.

Credit without collateral and without regular income

Credit without collateral and without regular income

If you want to take a loan without collateral, but can not prove a regular income, the whole thing looks already problematic. As an applicant you are then considered by the banks as a risk group. The bank does not receive any collateral on which the applicant can take out a mortgage. However, if the claimant can no longer pay the installments, the bank will have no income that it can pledge. She has no way to get her money in this regard.

Because of this, most banks do not grant credit in such a case and you are considered unworthy of credit. One way to solve the problem, for example, would be to include a person in the loan application who is making a regular purchase. Another possibility would be to name a guarantor. He agrees to the bank willing to jump in the event of the applicant can not pay more for the rates of his credit. Then the guarantor takes over the debts and pays them to the bank.

Foreign banks as lenders on loans without collateral

Foreign banks as lenders on loans without collateral

If you are unable to prove that you have collateral or have a steady income or a guarantor, you can also seek to obtain loans from foreign banks. The offer of the banks can be found on the Internet. However, interest rates vary very much there. One should be aware that as an applicant without proof of collateral, a job or a guarantor, one must often pay significantly higher interest rates and thus have to quickly pay a multiple of the loan. The interest rate fluctuates between 5% and 16% depending on the bank, but promises in most cases a flexible term, so that you can repay the loan even with smaller installments.

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