Unsecured loan: financing with the guarantee of a single signature
Who has never heard of the so-called unsecured loan? Although it is a very common formula, many people do not know exactly what is referred to when we talk about an unsecured loan. Let’s see, therefore, to clarify. Basically, the so-called unsecured loan is a loan for which the bank to which one applies for the approval of the loan requires only the signature of the applicant.
For example, personal loans are included in this category. In principle, when a loan is requested from a credit institution, a second signature is requested by a guarantor who will be responsible for remedying any debts of the applicant, thus guaranteeing the bank. This does not happen with the unsecured loan for which only one signature is sufficient.
How the unsecured loan works
As previously stated, no guarantee is required for an unsecured loan. Here, it should be remembered that loans and mortgages are not homologous. For this reason, it is not necessary for the applicant to produce documents certifying any guarantees at the time of requesting a loan. The unsecured loan must necessarily be finalized.
In practice, the applicant must provide the credit institution to which he intends to apply the reasons for which he has decided to apply for a loan. Furthermore, it is interesting to note that it can be requested for limited sums and, therefore, for purchases that are not excessively expensive. Appliances, cars: these are the purchases that can be paid for with an unsecured loan. An important thing to emphasize concerns the fact that, in the event that some installments are not paid, the bank does not have the possibility to attack the purchased good with the money disbursed.
And if the applicant’s signature is not enough? In this case, one has the possibility of having recourse to a guarantor who, in any case, does not have to do anything other than signing.
Unsecured loans: other types
In some cases, the salary-back assignment or the retirement pension can still be considered unsecured loans. Obviously, in such cases, credit institutions deal with much more secure loans than the previous ones. As it is easy to understand, in fact, the certainty of being able to get back the money lent with interest is given by the presence of a secure income. In these specific circumstances, it is really rare for banks to require the presence of a guarantor.
Who can apply for an unsecured loan?
The unsecured loan is the ideal formula for an employee or independent who needs a small amount of money to make a purchase. This formula is also often used by more than one person who must make a joint purchase or who, perhaps, have to do a job. A practical example? In the event that some condominiums are in the condition of having to spend money to renovate the building in which they reside, they have the option of requesting an unsecured loan. Another case is that of retailers who need to resort to formulas of this kind to make so-called installment sales. And what about the amortization ? The amortization of an unsecured loan can be fully customized at the time the contract is stipulated and, therefore, can be established based on the specific needs of the applicant.
Like all other loans, it must be repaid in installments and must also include specific interests also calculated at the time the contract is signed. Obviously, before signing a contract it is essential to compare the various offers of the lenders in order to choose the loan that best suits your specific needs. To be variable are the interest rates and, therefore, these are the ones that must be kept under control.
How to apply for an unsecured loan
Submitting the request for an unsecured loan is really very simple. Indeed, in some cases, the request can also be made online . Not implying any kind of mortgage on real estate, in fact, provides a very streamlined and very rapid procedure. To apply for an unsecured loan, simply go to the bank to which you intend to submit the request and present all the necessary documentation. In addition to this documentation, it is essential to have a valid identity document and tax code . In short, signing up for an unsecured loan is really very simple. The important thing is to take into account the numerous alternatives on the market and to evaluate with particular attention all the options based on personal needs and one’s own economic situation.