Credit without guarantor | Unsecured loan
Banks often require a guarantor as collateral for the loan application. But what to do if no guarantor exists. Be it the people in your own area who are not creditworthy or already have a loan, or because you are unknown in the area, hardly anyone and all the other people out of action.
So that you do not have to give up the necessary credit, there is an alternative to guarantor. If a guarantee is not possible, most institutions and institutions will generally accept other securities for the loan in question. The so-called physical pledge can cover a broad spectrum. For example, if you own a piece of land or an object, you can use it as a pledge.
The financing financial institution will also be included in the cadastre so that the principal bank or financial institution can arrange for the sale of this property without repayment of the loan to settle the claims incurred. However, this only makes sense for large loan amounts, which is why this option is waived for small loans and looking for other available credit collateral.
The borrower will use the house bank as the beneficiary of this contract for the duration of the loan so that the principal bank has immediate access to these financial assets. If the borrower becomes insolvent, the lender can reverse the amounts invested in such a way and settle the borrower’s liabilities from the resulting income.
Such assignment is particularly useful for small loan amounts, as their terms are usually so short that the duration of the investment exceeds the duration of the loan. This is necessary because only those financial assets that can not be used during the term of the loan can be used as collateral.
Such a security is usually used only for vehicle financing, if the car thus obtained, for example, is used directly as a deposit. For the duration of the vehicle financing, the house bank is registered as the owner of the vehicle, even if the borrower can continue to use the car as owner.
With the payment of the last installment, the car finally becomes the property of the borrower. But also high-quality motor vehicles and agricultural machinery can be lent in this way, so that the loan can be secured quickly. If you can not afford either a guarantor or a collateral, it will be harder to get a loan from an ordinary financial institution.
Mediation platforms in the network make it possible to obtain a loan from a private lender. This is completely without collateral, only the own creditworthiness is decisive for the business success in this segment. The brokerage office examines the creditworthiness of the potential borrower to secure the coverage of all persons involved. Then you can ask your creditworthiness on the stage and find a suitable lender.
By freely entering the loan amount as well as the loan term and interest, it is possible to identify a suitable lender. In particular, the high interest rates and short maturities mislead the lenders to lending. Private borrowers disagree with late payments or bankruptcy and go to court quickly.
If these methods are too cumbersome for you, you will usually try to borrow the necessary change in your personal space. Even if, for various reasons, relatives and acquaintances are not eligible as guarantors, this does not mean that they are not solvent enough to lend themselves.
Especially for small loans can often be found quickly and easily an answer. But even with small sums you should conclude a loan contract in the private sector. On the one hand you convince the lender of your own serious intentions, on the other hand, such a contract also provides a certain legal certainty between relatives or fellow human beings.
These include the name of the lender and the borrower, the amount of the loan and the duration of the loan. Finally, the specified interest should be entered so that both sides can refer to a document. You can see that it is possible to have a full loan even without a guarantor.
Depending on your personal situation and the availability of any collateral, you can either target a loan company or a retail investor. Depending on the amount and duration of the loan, almost every loan application is fulfilled without the need for a guarantor.