Are you looking for loans without collateral? In that case, you are in the best possible website, because we have a complete guide on these types of loans. And, of course, we also offer you an analysis of the best loan companies without endorsement of the market
Here we leave you all the requirements and conditions that you need to be able to request a loan without collateral. We recommend that you compare well between all companies and financial entities depending on the amount of money you need and your particular economic situation.
What are loans without collateral exactly?
To explain what non-guaranteed loans are, it may be preferable to start by explaining what secured loans are. That is, normal lifelong loans. In this way, we can clearly see what non-guaranteed loans are by simply removing the guarantee from the equation.
A secured loan (a normal loan) is a loan that a financial institution grants to a person using a thing as collateral for the payment of the debt in the event that the debtor is insolvent.
That is: Imagine that they lend you € 10,000 and put your car as an endorsement. If, month after month, you return the money you owe, nothing happens. If, at the end of the loan repayment period, everything went well and you have returned the money, no problem. The deal has been properly concluded.
However, if you are late in the deadlines or, definitively, you declare yourself insolvent and cannot return the loan, the financial institution will keep your car. In this way, they can sell the car and pay off part or all of the debt.
As you can imagine, these types of loans are quite dangerous, because if you have put the car as collateral and they keep it, they have done a good job. But imagine if what you have put as collateral is your house or that of your parents.
And, believe me, there have been many cases like the latter, and I assure you that you don’t want to see yourself in that dramatic situation,
On the other hand, we have loans without collateral. In these types of loans, the financial institution does not require you to provide a guarantee as a guarantee in case of default. Therefore, in the event that you default, you will be on delinquent lists, but, at least, you will not lose the car, the house or any other guarantee.
Thus, if, a while later, you return the money that they lent you and that you did not return in time, you can leave the list of delinquents and you will not have lost the guarantee.
That is, a loan without collateral is a formula that offers much more security to the borrower.
Now, here is a question to answer: And how is it possible that a financial institution is willing to take a greater risk? And the answer is simple: The higher the risk, the greater the return.
This is a basic investment and loan law: If you lend money in the long term, you will receive more interest than if you lend money in the short term; If you lend money at risk, you will receive more interest than if you lend money safely.
Thus, for the financial institution it is a good business, because the greater risk allows them to charge higher interest. In this way, if someone defaults, they do not need to execute the guarantee of a guarantee, because they already compensate that loss with the extraordinary gains obtained from the other people who have repaid the loan.
Obviously, that being said, it might seem to you that it is not quite a good business for you. After all, if they charge you twice as much interest. Why should you accept it?
Here we enter the choice of the best option for each one, and that is something you should analyze for yourself: Does it compensate you more to pay higher interest or risk your car or your home?
There is no single answer. Each situation is different. However, it is true that loans without collateral are usually acquired by certain types of individuals and families. And we will talk about that in the next section.
Who are fast loans without collateral intended for?
Fast non-guaranteed loans are designed, above all, for the following groups of people:
The group that most often uses fast loans without collateral is low income. Why? For the simple reason that they are usually people who have no guarantee to opt for a normal loan.
Imagine a family that lives on rent, does not have a car (or is a badly damaged one, to the point that no entity accepts it as collateral) and has no relatives willing to guarantee them.
What can a family do in that situation? Well, logically, if they need a loan, they have no alternative but to go to a loan without collateral.
Something similar happens to students: They have no properties with which to guarantee their projects. It is true that, sometimes, they have the guarantees of the parents, but it is not always the best idea to use them (as we will see in the section dedicated to loans without collateral for entrepreneurs).
In general, students usually need money for both contingencies and, above all, to undertake business ideas (for unforeseen expenses they usually have the support of parents).
And, of course, there are financial institutions that are willing to grant these loans so that the youngest can realize their business ideas.
Finally, retirees tend to go to loans without collateral because, although they usually have a property home, it is the only thing they have and, therefore, they are not willing to put it at risk (with very good criteria, that is, He passed).
That is why they prefer to take on slightly higher interests and avoid such a high risk that it would mean losing their home at such an advanced age.
It must be said that, in this case, there are times that financial companies put some obstacles, because it is usual that they have a limit age from which they no longer grant loans (because if the person dies, they would lose the possibility of recovering the money borrowed)
In any case, in the cases in which loans are granted, retirees usually go to this type of loans without collateral, for the reasons that we have already mentioned in the previous paragraphs (and that seem most sensible to us).
Loans without collateral for entrepreneurs: Make your dreams come true
There are many young people who have ideas to develop companies, but do not have the capital to make them happen. And what the system offers them is that they take their parents’ house and use it as collateral to obtain a loan. And that is very dangerous!
We recommend that you take a loan without collateral. It is true that the interest will be higher, but it is a much smarter option, because, if the company fails, you will have no problem other than having to repay the loan to get off the list of delinquents.
Otherwise, the company will have failed, you will be on the list of delinquents and, in addition, your parents will have been left homeless. And, given that 70% of companies fail before they have been running for two years, taking this precaution is essential.
In addition, there are many non-guaranteed loan financial institutions that offer special loans to entrepreneurs, with conditions slightly different from those offered to other types of people seeking a loan.
And remember that sometimes it is not necessary to take a loan to undertake. Keep that in mind and make sure what you need to set up that company you are so excited about.
What are the characteristics of loans without collateral?
Then, clarified what they are and for whom the loans without collateral are intended, we mention what are the most common characteristics of this type of loans:
- Quick and simple procedure: The first characteristic that these types of loans usually have is that the procedure to obtain them is very simple and fast. In just a few minutes, you are validated (or not) to receive the loan. And, after this approval, it takes less than two days to send the money directly to your bank account.
- Reduced amounts: In general, loans without collateral do not amount to such high amounts as you can get in a normal personal loan from any bank. Normally they are smaller amounts that reach, at most, € 1000 (although this will depend on each entity, of course).
- Variable terms: The delivery terms of these loans are also quite variable. Some entities give you the loan and demand the repayment after one or two months in full, while other entities raise more traditional terms and repayment methods (with monthly installments).
- Interest rates somewhat above average: In general, loans without collateral have a higher than average interest rate, for the simple reason that the entity offering the loan is assuming a greater risk (because, having no guarantee, there is no way to “settle” the debt if you don’t pay). However, in recent times, competition between different entities of this type has meant that these rates do not go through the clouds.
- Without paperwork and 100% online: Of course, one of the main attractions of this type of loans is that they are totally online, so you do not have to worry about paperwork. This brings comfort and speed.
What requirements do you need to obtain a loan without collateral?
When we take a loan without collateral, they will ensure that we meet certain requirements (of course). These requirements, of course, may vary depending on each entity, but the following are usually common:
- Have Spanish nationality: The first requirement will be that you have Spanish nationality. It is important to note that it will not be necessary that you were born in Spain, but simply have a DNI or an NIE.
- Being of legal age: Another very common requirement is that you are of legal age. However, in some entities they require you to be over 21 years old, not only of legal age. If you are young, you have to take a look at this requirement to see if you meet it. It is also common for loans not to be granted from a certain age (70 years, for example).
- Have regular income: The most important point of loans without collateral is to demand regular income to be able to face the loan. However, it doesn’t matter where that income comes from: It can be a pension, capital income, a subsidy.
- Owning a bank account: Logically, you will need a bank account to have the money transferred. The account holder and the loan taker must be the same person.
- About being in financial credit institution: Many people wonder if they can grant you a loan while being on the financial credit institution delinquent list. The answer is yes. It will depend on the entity, of course, but many financial institutions that offer loans without collateral are able to analyze your profile and decide whether or not to give you the loan even if you are in financial credit institution.
As you can see, they are not too complicated requirements. In fact, some loans are given with astonishing ease, even being on a list of delinquents such as financial credit institution. Therefore, you should have no problem getting your credit.
The best mini-credit companies without endorsement
Finally, after having done this in-depth analysis of what they are and what are the characteristics of the loans without collateral, we will now recommend what we consider the best loan companies without collateral.
We have analyzed these companies and have chosen them because they are the ones that offer the best conditions to their clients (therefore, they are the smartest option when contracting a debt):