Loans without paycheck and without guarantor – general info
Loans without paycheck and without guarantor – general info” />
When we talk about loans without a paycheck or guarantor, we refer to loans that can be requested by those who do not have a job as a fixed employee (without paycheck, in fact) and do not want to ask for the intervention of a guarantor, i.e. a third person ready to repay the debt if the applicant is unable or unwilling to do so. This does not mean, however, that there is no need for alternative guarantees.
The loans in question in most cases have to do with small sums, usually below 5 thousand USD : it is not difficult to guess the reason, in the sense that banks and credit institutions are not willing to expose themselves excessive compared to those who have a high risk profile (and those who do not receive a regular salary fall into this category).
It is not possible to obtain a loan in the absence of guarantees: if there is no guarantor, then there is a need for other guarantees. And, obviously, the higher the risk profile, the more substantial and significant the guarantees required by banks for the granting of the loan.
Alternative guarantees possible
In essence, the alternative guarantees that can be used for loans without paycheck and without guarantor are essentially two:
- the mortgage on the house;
- the pledge as guarantee.
As regards loans without a paycheck with mortgage on the house, these are loans that are chosen when you do not have a demonstrable income: you therefore decide to focus on the mortgage on a house or another property owned .
We must not think, however, that everything is easy, in the sense that for small loans, such as those we are considering, the possibility that the bank decides to refuse a mortgage on the house as collateral cannot be excluded. .
In fact, in this circumstance the value of the loan would be much lower than the value of the property, which would result in a partial mortgage which would be disadvantageous for the credit institution, since in the event of non-payment of one or more installments the procedure for returning money would be somewhat complicated.
The situation is different for people over 65 years of age, who can take advantage of life-long mortgage loans, by virtue of which the home is transformed into immediately available liquidity; therefore, upon the death of the subject, the heirs have the opportunity to decide whether to sell the house, in order to return the sum paid to the bank, or whether to pay off the debt from one’s own pocket while keeping the property. However, it should be considered that the case of a loan without a paycheck for a person over 65 is extremely rare, since almost everyone can count on retirement at that age.
As far as loans with a pledge are concerned, on the other hand, they are used as collateral for valuable goods (for example, they may be precious stones or jewels ): this solution is to be preferred in the event that, although not having an income, there is an urgent need for liquidity.
Loans for those without a paycheck can still be obtained if you have alternative annuities. The case history, in this sense, is very wide: just think of a jobless wife who receives, after divorcing, a monthly maintenance allowance from her husband, or any person who does not work and keeps renting apartments or properties to third parties, but also to those who have invested capital that produces constant returns.
Be careful, however, because a bank can decide to grant a loan without a paycheck only if the applicant is able to demonstrate that he can continue to have the annuity for the entire duration of the repayment period of the installments.
A last aspect that deserves to be taken into consideration when dealing with the issue of loans without paychecks and without guarantor is that of interest rates, which for this type of financing are very high, as is the case for all loans which must be granted to subjects with a high risk profile.
In principle, it can be said that the higher the risk for the lender, the higher the interest rate of the loan. The APR can go up to 12%, which makes it clear that these loans are not too convenient and should only be requested if you really cannot do without them. It seems obvious that a bank offers more interesting and favorable conditions for those who make solid and reliable income guarantees available.
We must not forget that these personal loans for banks are risky and therefore are granted only if those who request them have a certain creditworthiness. In order to identify the most convenient solution, it is appropriate to take into account not only the APR, i.e. the Annual Global Effective Rate and the Tan, i.e. the Nominal Annual Rate, but also and above all the combined insurance policy, which is one of the items of most significant costs among all those connected with the granting of such a loan. The stipulation of an insurance can be imposed as a necessary and compulsory condition by the bank: the costs must be verified by carefully reading the relevant clauses of the contract.
In conclusion, loans without a paycheck and without a guarantor are possible under special conditions: it is good to note, however, that requests concerning small amounts are accepted by banks almost exclusively.