A guarantee is an additional guarantee for the bank that the stipulated repayment quotas will be met and that in case the client can not face the payments, the money will be returned to the financial institution by another means. Now, if you do not have any physical person that issues you or a specific asset, for example, a home, how can you access loans without a bank guarantee?
Elements of a bank loan
The banking procedures usually include nomenclatures that are not used in the day to day and that it is necessary to explain to avoid misunderstandings. It is important to remember that operations with financial institutions always include money movements, an additional reason to control all the necessary terms so as not to take unpleasant surprises at the end of the month. At the time of applying for a loan it is essential that you know, what amount of money can I request, the interest that will apply to provide me the money, what commissions and other expenses I have to pay, the term or period of time agreed to return the loan and the amount of the periodic installments- weblink www.intuitionandhealing.org/finding-a-great-merchant-services-provider/ Intuitionandhealing.
The fact of having a guarantee can be helpful for the bank to grant you the loan. This is not a universal norm and will depend on the financial institution, the amount of money requested, the solvency of the borrower, etc.
Loans that can be requested without guarantee
When classifying loans, these can be organized into two large groups: mortgage loans and personal loans. In Personal Loans, financing is usually easier to obtain than in a mortgage loan and usually, the bank does not require a specific guarantee (such as housing in a mortgage) but will have to respond to the payment of the loan with the present and future goods.
The Personal Loans are those that the financial institution offers its clients to solve specific needs that arise at a specific time. The best known are consumer loans, which are intended to finance durable consumer goods such as a car, motorcycle, furniture, etc. Also included in the Personal Loans are those that are dedicated to covering, for example, the expenses derived from the studies.
The loan simulator allows you to calculate the monthly fee and the interest you should pay on your loan.
Requirements for accessing loans without a bank guarantee
It is important to understand that all the prerequisites for the granting of a loan the bank are designed to check the creditworthiness of their customers and ensure that the money requested to be returned with interest. For this purpose, the financial institution will ask the plaintiff for a loan, among others, the following:
- Be of legal age
- Be solvent: that is, have a higher income than the obligation acquired with the bank to return the loan.
- The bank can request additional documentation for the study of the operation.