A cash loan without collateral is issued only on the basis of the borrower’s creditworthiness. An unsecured loan is one that is received without using property as collateral .. Borrowers, as a rule, must have a high credit rating, which will be confirmed for the issue of a loan without collateral.
In the field of finance, a loan without collateral refers to a type of debt or general obligation that is not secured by collateral for the amount of the loan issued by the lender in the event of bankruptcy or failure to fulfill the conditions for paying off the debt. In case of non-repayment of the loan, the lenders will make a claim to the borrower through the court to recover the debt.
Bank loans without collateral are subject to high risks, usually these are very high interest rates as a condition for covering unsecured debt. The maximum loss on properly secured loans is the difference between the market value of the loan and debt. Therefore, considering the situation in the context of lending with collateral, the use of collateral reduces the rate of the loan, depending on the solvency of the debtor. Without collateral, the lender loses the entire amount on the loan, in case of default or other circumstances, therefore, should increase interest rates, to reduce the risk.
An unsecured loan can be a good option for people who do not have enough assets, who usually act as collateral for a loan.
The decision to issue loans without collateral is made quickly. As a rule, as quickly as possible, literally in a few hours. Different banks offer different amounts of loans. The amount varies from 25 thousand hryvnia to 100 thousand hryvnia. The amount of the loan received depends on the credit rating of the borrower. The more trust you inspire at a bank, the more you can count on a large loan amount. The maximum term of such loans can reach 60 months.
The borrower can get a loan without collateral in any city of Ukraine where there are representative offices of large banks and other credit organizations providing this service. When making a service, the bank will find out the maximum information about you, yours, your family. For what needs a loan is taken, banks are not always interested, the main thing is that you have a constant monthly income – more than 1200 UAH. per month.
For example, we will consider this situation, we need to get a loan without collateral in Kiev for 50,000 UAH. The bank will require official confirmation of income in the amount of about 3500 UAH. The effective rate on such a loan, taking into account monthly commissions, insurance payments, and servicing, will be at least 30% per year. In a year we will receive an overpayment of 15,000 UAH. Over three years, the overpayment will be 45 thousand. hryvnia that is 90% overpayment.