Are unsecured personal loans possible to obtain? If we were to respond without dwelling on the multiple forms of guarantees possible to obtain a personal loan then the answer is certainly not. But fortunately things are not always Yes or No or White or Black, there are perhaps yes if… or the various shades of color.
Premise: this article is dedicated to those people who have little experience in the field of personal loans without guarantees. For some, different concepts may seem obvious, but since not everyone knows them or is fully aware of them, they are still reported, in this way, we try to provide all that information that can give a complete overview as possible, to understand some concepts, first of all: banks and financial companies sell money, this is their job and you can be sure that they will do everything possible to give them to you, provided that they can be sufficiently sure to get them back with lots of interests.
Going back to personal funding, it’s basically the same thing. Everyone knows that the main guarantee of all the guarantees for this type of loan is the paycheck, but not everyone knows that there are many forms of guarantees that a bank or financial company takes into consideration when deciding whether to grant or not to grant a loan.
From the point of view of those who find themselves examining a request for financing, what is really important is to be able to understand if there is a real possibility, to get back the amount of money eventually granted plus practical management costs and interests. If such a possibility exists, the loan may be granted even if there are no personal guarantees. Let’s clarify.
Unsecured personal loans: possible scenarios
Have you read the introduction and decided to continue reading the article? Very well! A sign that something I have to tell you could help you find a way to get your loan even if you apparently think you don’t have enough guarantees to achieve your goal.
Which category do you belong to? Do you not have a permanent job, or are you a self-employed and therefore without a paycheck, or are you not one or the other but simply looking for a job? Maybe you are a housewife, or you are a student or even a possible new entrepreneur who needs a loan to start his first business. If you find yourself in one of these categories just described, don’t despair, there is a solution.
Alternatives to unsecured personal loans
Let’s start from the most problematic case, that is the one in which you need a loan but you have no personal guarantee to put on the balance, that is, there is no employee income, nor a rental income or other annuities, nor a property owned, nor precious stones to be sold as a pledge.
Despite everything, you must not throw in the towel, even if you fall into one of the categories mentioned above, there are still 2 possibilities to obtain a loan and they are: the intervention of a guarantor, a co-obligated cun or the so-called loan of honor.
Loans without personal guarantees but with Guarantor or Coobligato
The first of the two possibilities (the loan that involves co-obligation) is the one that opens if a guarantor with a sufficiently solid financial position intervenes to guarantee the loan to be able to pay the installments if the loan holder does not be able to return the due.
The ideal guarantor is someone who has a good credit reputation, who has never had reports to CRIF and who is not reported as a bad payer. Of course he must have an income from self-employment, or from employment, or receive a pension, but in this case he must not have exceeded 70/75 years of age. If these requirements are met, it is possible to obtain a personal loan without own guarantees.
Attention, it is not excluded that the bank asks the guarantor to sign bills, but generally this happens only if the sums requested are high. A house worth 200,000 thousand euros cannot be foreclosed for a loan of 5,000 euros.
Loans without guarantees: the Loan of Honor
The second possibility has some more constraints, we speak in this case of ” Honor Loan “. This type of loan is granted to all those who meet certain requirements and it may be that it is also right for you. So going to the point, if you need the loan because you are a student and you need the money to pay for your studies, you can ask for a loan of about 5,000 / 6,000 euros.
Still speaking of honor loan, if the same is used to open a business, a franchise, or another any other business, the amount that you can request is far greater than that expected for the students, in fact the same can reach over € 100,000. If this is your case, I advise you to talk about it with a good accountant, who will surely be able to explain the details, and eventually help you to submit a loan request with a lot of business plans.
Loans without paycheck guarantee but with demonstrable income
Don’t you have a paycheck or a guarantor? It’s okay anyway, because you have at least a small demonstrable income. In this case yours is not as desperate a situation as you might think.
You may not know, but, given that permanent employment is now a rarity, banks and financial companies have organized themselves to screen and possibly grant a loan without paycheck and without guarantor. The result is that often, as a guarantee, these also accept income from annuities such as those from rental of properties or other types of annuities provided they are documentable.
What are the documents required to document an income of this type? Simple, you can use the bank statements through which you collect this money. In addition to bank statements, the tax return of past years is sometimes required, so here we can reasonably speak of demonstrable income.
Of course, also in this case, the installments of the loan to be obtained must be sustainable. Let’s take an example: if you have a monthly net income of 800 euros, a sustainable installment (if there is no other income) will be more or less than 200 euros per month.
However, these data are indicative as each bank has its own parameters on which it calculates the sustainable installment. Finally, even if taken for granted, I suggest you not to take this path if the account balance is often in red.
Loans with bills
This option is undoubtedly the most difficult to implement. As I know you know, loans changed in 2018 are a rarity.
We are no longer in the era of the economic boom of the 60s, the “Italian miracle” is old and long-overdue history (unfortunately). I speak to you of that era because in those days, the changed loans were not the exception but the rule. If you ask an elderly person, he will surely confirm this to you.
Today loans with bills of exchange are the exception, as bills of exchange are used almost exclusively for commercial transactions and only in special cases that I am not able to explain to you because what is long and not inherent in the subject matter.
Coming to us, even if difficult to implement, exchanged loans are still possible. To apply for a loan of this type, you must necessarily have an asset that is “collectible” and that it has a sufficiently high value to amply repay the loan possibly granted.
The bill of exchange is an enforceable title, that is to say that if you do not pay the installments, the bank or the finance company will not return the bills to the signatory of the loan and will send them in protest. If what has just been said happens, in a short time it will come into possession of the attachable assets, but not only, if once they are auctioned they will not be sufficient to close the entire amount financed (because they are sold off), however, it will remain a debt position open with all the consequences of the case.
Loans from private individuals
Yes, there is also this possibility, among loans without guarantees and without a paycheck there are also loans with bills of exchange between individuals or even more generally loans between individuals.
Not everyone knows it but in the Italian legal system, this practice is contemplated provided it is occasional, that is to say (for the wily ones) that the private lender can do it but it certainly cannot become an unauthorized financial company.
Returning to us, if you know a private individual willing to lend you money but who at the same time wants to regularize this type of financing, know that it is possible. Among other things, the private individual who lends money can do so both free of charge and for profit, thus collecting interest, which, in no case, may in any case exceed the usury threshold. So when interest payments are foreseen, the loan is called ” loan for consideration “, if instead the interest is not provided for in private writing (which must always be done), the loan or mortgage, if you wish, is called ” mortgage free “.
Unsecured loans are practically impossible to obtain unless you also have alternatives. This article finds reason to be because it points to the fact that often not everyone knows that there are alternative guarantees that can be put on the balance, this species is referred to as small loans.
Of course, as you surely have guessed, the success of this type of operation is linked to multiple factors and it is not at all easy to complete successfully. To increase your chances of success (if you are not among those who can access the loan of honor) it is necessary that you prepare yourself well before going to ask for the loan in the bank.
Only proceed with the loan application if you can answer these questions: how do you intend to return the money you borrow? Do you have a guarantor who can act as a co-obligation? Does it have any income as long as it can be demonstrated? Do you own property?