When applying for a loan, the question of the collateral that the loan seeker can give usually plays a major role. On the one hand, understandable, because the bank naturally wants to have guaranteed that it will get its money back in any case.
On the other hand, having no collateral does not automatically mean that the borrower will not repay. Does this mean that people who cannot offer collateral in the form of, for example, property, an existing life insurance policy or the like have no chance of obtaining a loan? No. As with all other fixed rules, there are always exceptions.
A loan without collateral – impossible?
A few years ago, it was almost impossible to get a loan without collateral. However, there are now a number of providers on the financial market who grant a loan even when no collateral is offered. In general, the house bank is the wrong contact. There are many offers for a loan without collateral on the Internet. However, the loan seeker should carefully examine the wide range of offers.
These loans are usually considerably more expensive than normal ones. Interest is a few points higher and often the full amount borrowed is not available. On the one hand, this means that a higher sum than is actually required must be taken up, as well as that the monthly charge is greater. There are good comparison calculators, but a higher burden must still be taken into account with such a loan.
Possibilities to avoid these disadvantages
For some time now there have been people who are ready to grant a personal loan. They are generally far more flexible in granting a loan without collateral. You can find them partly through advertisements in newspapers or via internet portals. However, caution and a good comparison are necessary here as with other offers.
Another way is to contact the house bank and teach either your own partner or another family member to guarantee the amount to be raised. The banks are happy to accept this. If these two options are either not desired or not wanted, some credit institutions also agree to grant a loan without collateral when taking out residual debt insurance.