Credit without Collateral Providers That Really Help

14 Mar

 

* Why not spend some more money on your account for your extra wishes or as a financial buffer.

 

  • Start your loan request now (there is no contract yet).
  • After checking your request, the money is already in your account after 4 days.
  • You just have to accept our offer. If not, then not. No hook, no cost.

The definition of collateral differs considerably between the banking language and the colloquial language. While in technical terms only the objective hedging of the loan and the guarantee are regarded as collateral, the everyday language extends these to a stable job and a sufficiently high income. In communication with their customers, financial institutions usually use the usual everyday language.

Lending without collateral in the technical language sense

Lending without collateral in the technical language sense

According to the technical terminology, virtually every consumer loan is considered a loan without collateral. The exceptions are car loans and real estate financing, in addition to the guarantees associated with a guarantee. In both cases, the financed good serves as collateral security, which is corroborated by the registration of the land register or the transfer by way of security. A stable job, adequate monthly salary and good Schufa information are valuable indicators of proper loan operations, but they are not collateral in the narrower sense.

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This valuation is advantageous for the credit customer, otherwise the bank would have a right to give notice if it becomes unemployed or earns significantly less than at the time of the conclusion of the contract. Many financial institutions require not only sufficient income for the payment of the monthly installments, but also an income above the exemption limit. Despite the potential seizure, the bank pays the loan without collateral in the strict sense, since it has no guarantee for the continuity of the employment of its borrower.

Contrary to consumer loans, financial institutions grant an operational loan without collateral only for small amounts of credit or for a positive economic development of the company.

Lending without collateral in the colloquial sense

Lending without collateral in the colloquial sense

The colloquial language also sees the sufficiently high income, which is likely to be achievable during the entire contract period, as collateral. According to this definition, it only speaks of a loan without collateral if the labor income is low or, as a result of a time limit, not secured during the entire term of the loan. This is increasingly true for credit seekers with an irregular income. A high probability of default leads to the bank having to underlay the loan with an increased equity capital.

For this reason, financial institutions usually grant a loan without collateral in the broader sense, usually at a higher interest rate, if they do not immediately reject it. The banks, which charge the same interest rates to all customers, reject bad credit risk more often than average, as they do not receive risk compensation through higher lending rates. An alternative to the bank loan without collateral offers the personal loan. Private lenders are, to a large extent, more interested in the purpose of a desired loan than in the hard facts about credit security.

You want to consciously promote projects whose purpose is understandable to them. For this reason, the most accurate description of the intended use makes sense. Confidentiality is maintained despite the comprehensive disclosure of personal circumstances, since only the platform operator knows the mutual contact details of lenders and borrowers.

 

* Why not spend some more money on your account for your extra wishes or as a financial buffer.

 

  • Start your loan request now (there is no contract yet).
  • After checking your request, the money is already in your account after 4 days.
  • You just have to accept our offer. If not, then not. No hook, no cost.