Loans without paychecks or guarantees
Being able to obtain loans without paychecks, also called unsecured loans, is not so simple since the main guarantee required by the bank is precisely having a secure, constant and certifiable monthly income.
Lenders need this to have the demonstration concrete of the customer’s ability to repay the amount requested, in the times and in the ways provided by the agreed repayment plan. The paycheck is therefore the guarantee of the repayment capacity.
Loans Without Payroll: what are they?
This is a particular form of financing that the bank grants to account holders who need specific amounts of money, but do not have a certain income and therefore a paycheck, which can act as a guarantee.
It is clear that, given the absence of guarantees and paychecks, applicants can only receive small amounts, since guarantees of equal importance would be required for larger amounts.
Alternatively, you can get the money by taking advantage of the promissory note without guarantees, or a loan that allows you to return the money obtained with the promissory notes.
Who can apply for loans without a paycheck?
Banks and financial institutions provide loans without paychecks to certain categories of customers, who have specific liquidity needs, even without having a paycheck that demonstrates actual employee income.
Customers who can apply for funding without a paycheck include:
- Young people;
- Housewives or those who work from home.
Loans Without Payroll For Young People
Young people are among the main recipients of loans without a paycheck as it is the most consistent class of people who do not yet have a fixed and secure income, to be offered as a guarantee to the banking institution.
The most requested type of financing is the loan of honor, which gives the possibility to postpone the repayment of the money obtained. In fact, the amortization plan starts only at the end of the university course, so as to allow the young person to enjoy a certain sum that allows him to complete his studies with serenity and considerable profits.
Alternatively, young people can take advantage of the funding in which, in addition to the debtor, the parent figure, who acts as a guarantor, flanks him.
Loans Without Payroll For Unemployed
Another category that often makes use of loans without a paycheck is that of the unemployed, that is, both people who do not have an employee job (self-employed, housewives or income workers) and those who do not have any type of income.
It is clear that these are borderline situations, in fact personal loans are disbursed only if there are specific and significant guarantees that somehow protect the credit institution.
Usually, loans without paychecks for unemployed people are disbursed in combination with a pledge on securities, to be used in the event that the debtor does not return the money, and more difficultly for mortgages on real estate.
Loans without paychecks and bad payers
Lastly, it should be noted that loans without paychecks are often associated with bad payers, i.e. the debtors who, due to repeated defaults and delays in payment of the installments, find their name registered in the main Risk Centers.
Bad payers, due to this situation, very often do not have the possibility of obtaining liquidity through banks. The only way to be canceled from the database is to regularize payments or wait 36 months after the expected repayment date of the loan that has not been repaid.
The guarantees required in 2017
In loans without paychecks, the lender does not have the guarantee of an employee’s salary. Consequently, alternative guarantees are needed, such as:
- warranties mortgage or lien on real estate or registered movable property, such as houses, boats etc.;
- personal guarantees, such as the guarantee of a parent. These are used by the bank in order to have the legal security that, in the event of the debtor’s difficulty in returning the money, a second person will be able to remedy the debt. The guarantor therefore becomes a fundamental figure since the bank will be able to contact both the principal debtor and the guarantor to obtain the money;
- insurances: loans without a paycheck are often linked to life insurance policies which give the bank the possibility of obtaining the return of capital in the event that the debtor dies or is permanently disabled.
Loans without paychecks: the alternative ways
There are several alternative ways to obtain loans without a paycheck, such as:
- guarantee, means the request for a loan, being able to count on a guarantor, that is, a person who has a solid financial position and who ensures that he intervenes where the holder of the loan is unable to pay the installments;
- mortgage a house or own any property, object or property, which reaches the value of the amount requested;
- rental agreement with fixed monthly income or with a monthly credit to the current account. These revenues can derive from work services without a paycheck;
- changed loans, are based on the mechanism of bills. The customer signs to ensure that he will refund the money requested and that the bank will be able to use it to collect the requested amount in case the customer does not make payments. However, they are not a very advantageous option as regards interest paid;
- demonstrate that you have an alternative pension, such as a maintenance allowance after a divorce or a rented apartment.
Beware of scams
To avoid scams it is necessary to be wary of offers that are too easy and convenient : requesting maximum transparency is a must. Among the good habits to be supported are:
- obtaining a written estimate;
- consultation of information and contract conditions;
- the comparison of the proposal made with other competitors.
In addition, loans without paychecks are usually distinguished by higher than average market borrowing interest rates. This however is not a scam, but it is normal since these technical forms of financing are characterized by higher costs. However, it is good to check that interest rates are not excessively out of the market, falling within the perimeter of usury.