Borrow without collateral and guarantors.
Most of the loans available online are so-called unsecured loans.
An unsecured loan is a loan that the lender does not require any collateral or personal security.
An unsecured loan is always easier and quicker to apply than a secured loan.
If the loan is secured by guarantors, the loan agreement will be doubled, as the guarantor’s information must also be reported and approved before the loan offer is received.
We only present on our website services that can be borrowed immediately , so these services do not include loans that require collateral or guarantor.
The only exception is the larger consumer credit, say, for example, Bigbank, which requires a personal collateral taker or another co-owner of a loan for a loan of over EUR 10,000.
Loans of less than EUR 10,000 Bigbank grants unsecured loans with a payment period of 6 to 72 months.
What is a purchased warranty?
This so-called ‘purchased guarantee’ appeared on the loan portfolio after the law on the Law on Short Loans 2013.
The purchased guarantee was in use in many loan loans granting loans.
In practice, this purchased guarantee meant that the customer had to purchase the guarantee separately from another company, rather than from the loan itself.
However, in many cases this meant that if the loan was granted by company A and the guarantee had to be purchased from company B, the owners of both companies could still be the same, or company B is a subsidiary of company A.
Requiring a purchased guarantee went to the point that several of its loans were not told at any time when the loan was taken out.
Also, the costs of the purchased guarantee were not reported in connection with the actual annual interest rate on the loan.
All in all, the activity was so insurmountable that the Consumer Ombudsman sought a ban from the Market Court for the provision of paid guarantees.
We do not present any loan service on our website that would require a separate guarantee for the loan.
It is advisable to apply for a loan with the guarantor or the joint applicant.
Some loan services on the net offer their clients the opportunity to associate their loan with a joint applicant or a personal insurance company.
These are usually provided by finance companies that provide larger consumer credit.
If it is possible to add a guarantor or a joint applicant to the loan, you should take advantage of it.
When a loan has two applicants or a guarantor, the credit risk of the loan is much lower.
When the risk of the loan to the financier is lower, then the loan will be made more secure and at a lower interest rate.
If you are applying for a consumer credit, you should always apply for it with a joint applicant or guarantor.
Loan amounts for unsecured loans.
You can apply for a loan online without collateral or guarantors for up to EUR 30,000.
The most common amount offered by loan services without collateral and guarantors is € 10,000.
More than EUR 10,000 unsecured loans are only offered by loan brokerage services that bidding for customers’ loan offers with several banks.