What are loans without paychecks?
When we talk about loans without paychecks, we refer to particular loans that are designed specifically for those who, in fact, do not have a paycheck (hence the name) and consequently do not have a fixed salary.
In most cases they concern rather modest amounts, below 5 thousand USD and it is not difficult to understand why: banks and credit institutions, in fact, tend not to expose themselves much for subjects who, not having one regular salary, show a high risk profile.
Loans without a paycheck can be disbursed without the applicant being able to present a monthly salary as collateral, but it is still essential that alternative guarantees are provided : in short, it is impossible that a loan will be granted if a guarantee is not offered in return.
It should be stressed, then, that for bad payers and protesters it is a difficult task to obtain loans without a paycheck. Simplifying: the higher the risk profile, the greater the guarantees required by the bank for the purpose of granting the loan.
Who are they for?
Loans without paychecks are aimed at several categories. For example:
- to housewives
- to self-employed workers
- to the students
- to young entrepreneurs.
In addition, loans without paychecks are aimed at employees whose salary, however, is already committed (for example with a loan linked to the assignment of the fifth), for example for another ongoing loan that covers more than 35% of the salary. In the eyes of the bank, such a situation is tantamount to not being able to have a paycheck.
Types of loans available without a paycheck guarantee
The loan with surety
As mentioned, in order to obtain loans without paychecks, it is necessary to present one or more alternative guarantees that would come into play in the event that the loan cannot be compensated. The most common is the surety, which is used for loans with guarantor: the guarantor is nothing more than a person who undertakes to pay the installments of the loan in place of who benefited from it in the event that the latter was not able to return the money.
Obviously, not everyone can be considered guarantors, in the sense that this figure must be able to boast a certain reliability from a credit point of view (and, for example, must not have been reported as a bad payer to CRIF).
It should always be remembered that banks are not required to grant a loan: it is always the faculty of the credit institution to decide whether to give the loan or not, even in the presence of a guarantor.
The loan changed
An alternative solution can be found in loans without a paid salary slip : with this form of financing, the payment of the installments is made through bills of exchange, i.e. executive securities which establish that the bank is authorized to proceed with the attachment of the assets in the event of which one or more installments are not paid. The value of the seized assets is equal to the value of the installment that is not paid: in order for the attachment to be implemented, there is no need for an injunction for payment, nor for a conviction.
Financial companies and banks, however, are not very inclined to offer loans without a paycheck, since the foreclosure of assets is in any case an activity that requires a certain expenditure of energy, resources and time.
On the other hand, loans without a paycheck changed are not particularly convenient even from the customer’s point of view, since the APR, that is the Annual Global Effective Rate, is very high due to the high interest, without forgetting the associated costs to the insurance policy imposed by the bank.
The mortgage loan
A third way to get loans without paychecks is to bet on a loan with a mortgage on the house, therefore, when it is not possible to offer the demonstration of a certain income, the mortgage takes over on a property owned to ensure the financing required.
Even in this case, however, it is appropriate to provide for a possible refusal by the bank, especially in the face of smaller loans. In fact, it would not be in the presence of a total mortgage of the house, but of a partial mortgage, given that the value of the property would be much higher than that of the loan. Thus, for the lender to return the money due in the absence of the payment of one or more installments would be too complicated a task.
The situation is different in the case in which the applicant is over 65 years old: in this circumstance, in fact, from the mortgage on the house we move on to loans without paycheck mortgages annuities, which means that the home is transformed into liquidity available immediately. Upon the applicant’s death, then, his heirs will be asked to decide whether to sell the house, in order to return the sum in question to the bank, or whether to keep the house and pay the debt out of his own pocket.
The collateral loan
A special formula of these types of loans is that of pledge financing: it is very simply a matter of using valuable assets such as precious stones and jewelery as collateral. A convenient and willingly accepted solution by banks, for those with an urgent need for liquidity.
The loan for self-employed workers
Finally, for self-employed workers who intend to apply for loans, it is possible to refer simply to the Single Model, that is to say to the ordinary model of the tax return, of the last year or, if possible, of the last three years.
In conclusion, these types of loans are characterized by considerable flexibility but are more difficult to obtain than one might think: in fact, banks often offer resistance in granting them (and they are legitimate to do so, it is clear).