Not all lenders request guarantees to grant a loan.
Many people have no way of guaranteeing their payment or prefer not to, so this type of loan is so popular.
What is a loan without collateral
A loan without collateral is a type of credit for which it is not necessary to present a guarantee or guarantor (the third party guaranteeing the payment, or “guarantor”). You only need to provide personal data (name, identity document), credit history and current employment status. With these requirements, it is necessary to understand that the loan will be for a much smaller amount than that of a secured loan and that interest rates are usually higher.
Where to get loans without collateral
Just a simple Google search on unsecured loans to find a large number of companies that advertise their financial services.
However, it is important to compare and know the companies to which the loan will be requested.
Generally, these types of loans are urgent for applicants, so certain lenders usually take advantage of the situation.
You should be especially careful with cash loans without collateral, as cash loans are customary from private lenders without legal support.
If you are asked for a down payment for your loan without collateral, do not use that lender. Normally serious credit companies, even when it comes to unsecured loans, do not ask for any type of advance.
Requirements for loans without collateral
The documentation to be presented in this type of credits is usually reduced:
- Your identity document :
If the process is on the Internet, the identity number or possibly a digital copy of the document will suffice.
- Credit History :
Normally you do not need to present anything, this will be reviewed from the institution using risk centers. Some lenders allow you to be on the list of the Credit Bureau, but most will deny you the loan in that case.
- Current employment situation :
Many lenders ask you to submit the last payment slip to assess your income and ability to pay.
The waiting time to receive a response to your loan application can range from a few minutes to several hours. Although they do not ask for guarantees or guarantees, they will do a risk analysis. The success of your application depends on the amount you are requesting, your current financial situation and, of course, the lender.
Loans without collateral and without checking Credit Bureau
Another very common situation is that you are in the Credit Bureau and need a loan, even without having a guarantee or guarantee. There are companies that do not consult the Bureau at the time of granting the loan, so that is a valid option in this situation.
Borrow-free loans are usually for small amounts, so if you have no guarantee, you are in the Bureau and you need a large loan, you probably want to have some type of guarantee.
Recommendations to request unsecured loans
You must remember three main things about non-guaranteed loans:
- They will not always grant it to you :
While you do not need a guarantee such as a property or a vehicle, or a third person as collateral, you will have to demonstrate a good working situation at this time and probably have a positive score in the Credit Bureau.
- You will pay more interest :
Interest rates can be very high, around 25% of the Annual Effective Rate (ASD). This is because lenders must protect themselves against the greatest risk of default.
- Be careful about what you will pay per month :
The amounts in these loans are usually between 6,000 and 120,000 Mexican pesos. The payment period between 1 and 5 years. This means that the payment installments can also be very high depending on the loan amount.
Finally, we recommend that you compare different lenders using Robin. You can read the requirements to know if they ask for guarantees.