Loans Without Guarantees: how they work and how to apply for them

There may be situations in life where you need a loan, but there are no guarantees to give. Very often the banks, where we are current, knowing the financial situation of the account holder, do not want to expose themselves and take the risk of granting loans.

The situation may also arise in which we already have financing in progress with the credit institution or we find ourselves in a critical situation for which we need liquidity.

Even when you do not have a permanent job and are only hired on short-term contracts, it can be difficult to provide guarantees.

In this article we see what unsecured loans are and how to get them.

Loans without Guarantee

Loans without Guarantee

A personal loan of this type is a loan that the person asks for without having a paycheck or demonstrable income from a self-employed person.

In practice, they find themselves in the condition of not being able to provide guarantees that they will somehow pay and meet the installments.

We specify that there is no loan for which no guarantee is requested. No credit institution or financial company would lend money without a guarantee.

A loan without a paycheck, or to those who do not have a fixed salary, is usually granted with the presentation of different guarantees, such as a mortgage on the house or the taking out of a loan.

A loan for a person with high risk is not easy to obtain.

The easiest loans to obtain for those who do not have a paycheck or demonstrable income are below five thousand USD, precisely because banks do not want to take on too many risks.

The personal loan

The personal loan

It can be requested without having to specify what it will be used for and you can ask it to your bank, to any other banking or credit institution, but also to financial companies.

The latter are very present online. Usually to apply for a loan you need to present documents, including those that prove that you have a salary, a certain income or in any case the possibility of repaying the money with pre-established installments.

The first guarantee required is, as we said, the paycheck, or the only one for self-employed workers.

Loan without Guarantees in detail

Loan without Guarantees in detail

By unsecured loan we mean a loan for which you do not have the opportunity to present a paycheck or a tax return.

This means that the institution or company would find itself taking on the total risk of our financial situation, if it had nothing else to use for the collection of the installments.

Nobody ever does. Banks and financing companies do not lend money without any collateral.

So with Loan without Guarantees we mean a loan for which in reality alternative guarantees are offered and different from the paycheck or Unique model.

Let’s see what these alternative guarantees are.

A guarantor

A guarantor

The guarantor is a person who knows the person applying for the loan well. He knows that, apart from the moment of difficulty, this will do everything possible to pay the installments without being insolvent.

He must have great confidence in the person requesting the loan because if the loan is not able to meet the loan, the bank or the financing company will go to the guarantor to request the extinction.

And since he has made himself the guarantor, he cannot avoid doing it.

The guarantor must, in turn, have good profitable reliability and a fair age. Otherwise it will not be accepted as such.

The bills

As we said, bills of exchange can be an alternative guarantee. The disadvantage of the bill of exchange is that if the installments are not paid, the bank or credit company will be able to seize assets to cover the amount of the unpaid installments.

The mortgage on the house

This hypothesis is feasible, but complicated. If the loan you are applying for is very small, it is not even worth considering.

In any case, provide for a mortgage on the home to be covered to the extent of the loan requested.

Other possible alternatives

For divorced persons, an alternative may be the guarantee of the maintenance allowance received by the spouse.

For those who collect rents, the alternative can be the guarantee of the fees that they receive from the renters.

There is also the possibility to guarantee with the values ​​you have, for example jewelry, but not only.

Who are the Loans without guarantees for?

To all people who do not have the opportunity to present a paycheck or a single person as a self-employed person.

We speak of housewives, self-employed, unemployed, but also of those in layoffs and young people.

As for young people, or students, there are actually other types of unsecured loans as well.

They are called honor loans and are granted without guarantees. It takes neither paycheck nor guarantee.

They grant a facilitated credit line, but it takes certain characteristics to be able to ask for it. Basically they are related to study or business purposes.

In this second case, the loan can be guaranteed by the Bodies, usually the region, which receives funds from the European community. For this type of unsecured loan you can find more information on the microcredito.gov.it website.

How to get a Loan without Guarantee

How to get a Loan without Guarantee

There are several online sites where personal loan simulations can be done and from which a comparison between various available solutions can also be obtained.

When filling in the fields required for evaluation, it is necessary to insert, in the space provided, that you do not have a paycheck available.

To apply for a loan, in online comparators, it is necessary to fill out a form that requires, in the first instance, the amount of the loan you want to request, in how many installments you intend to repay it, whether you want insurance or not and year of birth of the applicant.

In the following fields you will enter, as a type of employment, either unemployed or “non demonstrable income”. In this way we establish first of all if there is any loan offer that meets our search parameters.

If there is we can continue with the simulation and comparison and then request advice.

To do this, fill in the form with all your personal and contact data so that the financing company can reach us with communications.

Find a Loan without Guarantee

It is not easy. We tried to find a loan within the most famous comparison sites by entering, in the job field, unemployed, without the opportunity to prove income, and in layoffs.

A particular or more specific case requires a more careful evaluation. On each site you usually find a toll-free number. Calling and getting directions can be the most convenient and least time-consuming solution.

Loans without Guarantees advances 2019

Unfortunately, more and more people are in the condition of having no guarantees to offer, such as a paycheck, and having to apply for a personal loan.

For this reason, financial companies develop increasingly targeted services with the possibility of guaranteeing their willingness to repay the loan in different ways.

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