Loans without guarantees: the possible alternatives

There are two questions that need to be answered in order to understand why it is particularly difficult to find unsecured loans and which loans are characterized by this real condition. Once the answers are found, targeting searches in the most profitable way will become very simple.


What is meant by unsecured loans?

What is meant by unsecured loans?

Banks, post offices and financial companies respond to this question differently from the demand side or from the applicants, for whom unsecured loans are those that are granted without having to present any form of “protection”, on the word or also in writing (and possibly guaranteed by the object of the purchase itself, but not by forms of personal or income guarantees).

For the supply side, on the other hand, a ‘really’ unsecured loan is inconceivable, because it raises the level of the risk of non-repayment excessively. However, there is no shortage of cases in which instead of the most appreciated income guarantees (emoluments from employment or pensions), other forms of income are accepted (for example real ‘demonstrations’ of recurring income even without a paycheck ), or the presence of a certain patrimony, which can be attacked in the event of non-payment.

These types of loans are also the ones that ‘sprout’ more favorable economic conditions, compared to normal personal loans. Even in the case of a loan with promissory notes, speaking of unsecured loans is completely inappropriate, constituting not only a form of “personal” guarantee in all respects, but which also falls into the category of “executive” securities. Finally, there are the cases of contracts that allow the insertion of people who act as a guarantee (guarantor or co-obligation).


Loans without “guarantees”: who to contact?

Loans without "guarantees": who to contact?

The only exception to normal loans are so-called honor loans , where the applicant does not actually present any form of guarantee ‘in person’. Also in this case it is not a question of loans without guarantees in the strict sense, as there is always a fund, an institution or in any case an agreement, which ‘guarantees’ the bank which provides for the disbursement of this particular type of financing.

In the case of students , the loans of honor are the most accessible, instead for young people or those who want to start a business , microcredit is worth mentioning, which contains a form very similar to the loan of honor. For the rest, it is necessary to look at the credit policy of the various banks and perhaps turn to the one which is less severe.