Unsecured loans have been devoted to one of the financial products that most people are turning to for those who need funds to meet their most urgent economic needs. As it is possible that you may also require them at some point in your life, then we are going to tell you what their main characteristics are.
At Astro Finance, as an intermediary between lenders and borrowers, we are interested in the success of these economic operations, for which it is necessary to have reliable information. Take note.
What is a guarantee?
In the first place, it is worth defining this concept. Broadly speaking, it is an additional guarantee that a bank can request when granting a loan. Once this guarantee is available, the bank assures that the payment installments for the loan granted will be amortized. In this way, in case of default, the bank can recover the total borrowed money.
Therefore, requiring a guarantee means gaining security from the bank. It is not mandatory, but your requests have gone to more. In the following lines we explain why.
Why are the guarantees now being asked for more?
The answer lies in a specific context: the economic crisis that erupted in 2008. One of the reasons that led to the public intervention of Spanish banks was the verification of defaults on the repayments of numerous approved loans, as a requirement, it was urged to banks to tighten the conditions for access to credit.
Among the demands that began to request, we highlight the guarantees, the payroll and not appear in the census of defaulters published by organizations such as ASNEF and RAI. The origin of the success of loans without collateral is precisely at this juncture.
Why does the demand for quick loans increase without collateral or loans without collateral?
To answer this question, we have to pay attention to the two components of the concept of quick loans without endorsement. Many entrepreneurs can get an endorsement, but they may not achieve it within the time that elapses until they have to make the payment that is overwhelming them or want to hurry (from a fine to a product on offer).
Therefore, they need to resort to loans without collateral. To enjoy these financial products, you are not going to ask for this requirement. And, in addition, as you can carry out all online transactions, you can have your money for timely payments with the utmost urgency.
The different types of guarantees
On the other hand, you should know that there are different kinds of endorsements, which you can avoid asking if you opt for quick loans without collateral. These are:
A natural or legal person would be responsible, in case of debts, for the return of the loan. Its constitution is free and is usually associated with consumer loans. Due to the responsibility that is acquired, it is usually carried out among friends or relatives.
This does entail execution costs and its processing implies greater complexity. A bank other than the one that grants the loan would be responsible for returning the defaults through blocked funds.
Good or service
The guarantee of reimbursement can be a property, a property or a service of which you are the owner. For example, a house or a vehicle.
In this case, the use of this good is blocked as an additional guarantee through which to cover the possible defaults of the returns.
In short, loans without endorsements provide you with convenient access to financing, provided you demonstrate regular income that allows you to repay your amounts (which do not stand out as the highest).