Personal loans without paychecks or guarantees
In recent years the world of work has changed dramatically and, thanks to the economic crisis, and has seen the birth of an increasingly precarious economic context. Loans without paychecks are the credit market’s answer to the profile of new applicants who cannot count on an employment contract and therefore do not have a monthly salary, consequently they cannot demonstrate guarantees, they are loans designed to meet needs of those who cannot count on an employee contract. They appeal to a wide audience of beneficiaries, from housewives to university students, passing through the unemployed.
By using this type of financing it is possible to obtain small amounts. In general, in fact, they foresee the granting of sums up to 5 thousand USD. Likewise, repayment times usually do not exceed 60 months.
It is necessary to specify that although the presence of an employment contract is not necessary, it is essential to have alternative guarantees. Guarantees that can be of various types, ranging from the guarantee to the mortgage on a property. Otherwise access to credit will be almost impossible.
Personal loans without demonstrable income vs loans without paychecks
Browsing the Net, it is possible to run into offers of loans without demonstrable income, but it is not always clear what it is and above all who can get it. So let’s do some clarity on this.
When we speak of loans without demonstrable income, we refer to all those credit lines accessible to those who cannot claim a working income (salary, pension, etc.). Loans are therefore accessible to unemployed, students, housewives and other categories of taxpayers who do not work.
Before reviewing the characteristics of the various products that fall into the category of loans without demonstrable income, it is necessary to specify that the latter do not correspond to loans without paychecks or guarantees.
Personal loans without paycheck: what guarantees are required?
But what are the characteristics of loans without paychecks and above all how to get them in 2018 ? In our in-depth analysis you will find all the opportunities guaranteed by this category and a small guide dedicated to those who have been reported as bad payers, to be able to get out and request a new personal loan.
As it is easy to guess, these are credit lines intended for those who need liquidity in the absence of the guarantee of a paycheck capable of attesting to an income resulting from employee work.
Atypical credit products, because the permanent employment contract is usually the main requirement required by banks and financial companies.
In practical terms, these loans are aimed at a large number of categories of citizens, from housewives to young precarious workers, passing through the unemployed and self-employed.
It is therefore clear that loans without paychecks may differ significantly from each other, given the need to adapt to such different needs of the beneficiaries. An element that unites these products, in addition to the absence of a work income, is the need to provide alternative guarantees. No bank will grant you credit in the absence of any collateral.
Mortgage guarantees of the applicant
Loans without paychecks are particular lines of credit designed for those who do not have a paycheck or demonstrable and constant income. These loans can take various forms and denominations, from the loan to housewives to that for the unemployed.
Being types of credit with a high level of risk, the applicant must have certain guarantees that push the lender to grant the loan. In the case of the assignment of the fifth, for example, the guarantee is represented by the salary or pension, given that the installment is withheld directly from the monthly allowance. In the case of a form of financing aimed, however, the guarantee is made up of the purchased asset.
Given the absence of a paycheck as a guarantee, the applicant must provide alternative solutions to the provider. These can be real or personal in nature. But what are we talking about? Let’s find out now.
Mortgage guarantees or pledges relating to real estate or movable property can be provided to the bank. It is an opportunity that is practiced infrequently within the credit system. The reason is simple: the charges for defining a collateral often outweigh the benefits associated with obtaining the credit line.
The most practiced formula is represented by personal guarantees, such as the guarantee of a parent. Useful guarantee for the provider to have legal security which, in the event of reimbursement problems, a new person may intervene. This must have an excellent credit profile, capable of providing solid repayment guarantees to the bank.
From a formal point of view, the guarantor presented to the lender is jointly and severally obliged with the beneficiary of the loan (i.e. the debtor). In concrete terms, this means that the credit institution can also take advantage of the guarantor to get back the credit claimed from the beneficiary of the loan. The guarantor can then in turn claim against the debtor.
In the area of guarantees, the issue of insurance has a particular place. Loans to those who do not have a paycheck are often granted only for life insurance policies that allow the credit institution to obtain the repayment of the debt should situations of death or permanent disability of the debtor occur.
Insurances are not, however, to be considered real guarantees, given that clauses are added to the contract.
Loans without paycheck for young people
Loans without paychecks to young people represent one of the main categories of loans granted to those who do not have a formal employee contract. Mostly these are loans of honor granted to university students and represented by an advantage linked to the postponement of the repayment.
In fact, the amortization plan will start only at the end of the course of study or, in any case, at a time much later than what would be the time required for the repayment of a “regular” loan. The goal is clear: to bet on young people.
Another category of credit for young people among the most common is represented by those loans in which, the main debtor, is also supported by the figure of the parent. All those loans granted to children who do not have a paycheck (both because they work with occasional collaborations and because they have not yet completed the training period), but who still need to obtain a credit, belong to this area.
Thanks to the participation of a parent in possession of adequate guarantees (who underwrites the loan as guarantor) it will also be possible for the youngest to obtain the loan even over 5 thousand USD.
Loans without paycheck for unemployed
Another very important category of loans without paychecks is represented by loans to the unemployed. In this case, these are loans that are granted not only to those who do not have an employee job, but also to those people who do not even have other income deriving from work activities (self-employed, atypical workers, researchers, etc.) or from a real estate (for example, the rent from a rented house).
We are therefore faced with products that are difficult to dispense and often granted only on the condition that there are specific guarantees of a significant nature that they can circumvent the risk of insolvency felt by the credit institution.
Loans without a paycheck for unemployed people usually come in the form of loans accompanied by a lien on securities owned by the beneficiary. Much more difficult, however, is that loans are granted to unemployed people in connection with a mortgage on a property.
Let’s take an example. Let’s imagine that a person has an administered deposit with bonds for a value of 20 thousand USD, and that he wishes to obtain a loan of 10 thousand USD.
Admitting that the holder does not wish to divest the securities, the lending bank will enter a lien on the securities present in the deposit, to be used in the event that the debtor fails to return the loan installments regularly.
In this regard, it is very important to pay attention to the pros and cons of these technical forms. In fact, these are loans with a fairly high cost both in terms of commissions and in terms of the interest rates applied, not to mention the expenses deriving from the registration of the collateral guarantees.
Loans without paycheck for housewives
Another category for those who do not have a rather recurring employment contract is that dedicated to housewives. In fact, these are loans that are aimed exclusively at women who, taking care of the home, do not have a demonstrable income, but still need a reserve of liquidity that can be used to meet various daily expenses.
In these cases, financing normally takes the same form as loans without paychecks aimed at individuals who do not have demonstrable income. The presence of one or more alternative guarantees to the paycheck serves to make up for the lack of an employment relationship.
The only exception is funding without a paycheck that is aimed at women who receive a maintenance allowance from their husband. In this case, depending on the amount of the service, additional guarantees may not be necessary. In the section dedicated to loans for housewives you will find more information on the topic.
How to detect scams in 2018 and avoid them
Once you have examined what are the main forms of financing without a paycheck, it is important to remember that these loans are often traced back to various types of scams. The reason behind this risk is easily identifiable: those looking for a loan without a paycheck are often ready to turn a blind eye to prejudicial conditions, in order to obtain financing.
In reality, however, even if you find yourself desperately in need of money, it is important to always be careful to avoid being a victim of a scam. In other words, it is good to be wary of “too easy” offers, and always expect maximum transparency.
How estimates should be
A written estimate, consultation of the information forms and viewing of the contract (also taking the time to carefully view all the conditions imposed). These are all steps that you can’t give up to avoid running into a scam. Not to mention that before signing a contract it is always advisable to compare the offer with the other market proposals.
As regards the interest rate issue, we have already mentioned that loans without paychecks usually have higher than average market interest rates. Which of course does not necessarily mean being a victim of a scam, on the contrary it is quite normal.
However, it is important to always check that interest rates are not out of the market, and above all that they are not usurious. The reference thresholds of the Bank of Italy can be consulted directly on the official website of the institution.