For a number of credit programs offered by banks, it is planned to receive the necessary amount on credit without providing collateral and attracting guarantors. The tendency to simplify lending conditions shows that borrowers can receive fast loans no guarantor. And there are more than enough such offers on the market.
When applying for a loan without additional collateral, potential borrowers should remember that the bank is primarily interested in minimizing all credit risks. The higher these risks, the worse for the borrower will be the proposed terms of lending. Conversely, if the applicant is able to attract a guarantor, or to provide the subject of a pledge, the bank will establish the best conditions for the proposed contract. But this is possible only when linked to the level of solvency of the client.
The benefits of lending without collateral
Such loan products have a number of features that suggest a benefit or benefit for the borrower. At the same time, such credit programs have some disadvantages that make the overall offer less attractive. The fast loans no guarantor received the name “quick”, which means their accelerated processing.
This is the main advantage of the product. It is fast clearance, which is not accompanied by lengthy checks, requests for documents, clarification of information, is the main criterion by which applicants choose this particular credit program.
The main advantage of lending without a guarantee and a pledge is a minimum of documents and quick receipt of money.
In addition to fast clearance, among the advantages, the following signs can be noted:
Minimum package of documents – coupled with quick execution, it is also expected that the application will be submitted for one or several documents;
The possibility of receiving the amount upon appeal – after consideration of the application, the credit institution transfers the money the day;
Filing an application at once in several banks at the same time – a preliminary decision is made in individual cases within a few minutes, so the applicant submits several applications at once to increase his chances of receiving the required amount;
Loans without collateral and guarantors are non-earmarked – funds are spent by the borrower at his own discretion without control from the lending institution;
A good choice of loan programs – a separate program has been developed for virtually every category of borrowers in banks.
The benefits of fast loans end there. Banks are interested in the constant and stable growth of existing customers, so they are trying to lay the maximum of attractive conditions in their programs without violating the antitrust laws.
Moreover, some programs do not even provide proof of solvency. A potential borrower provides for consideration only an application on a bank form and a personal passport. On the basis of passport data, the lender requests a credit history, which is the only criterion for assessing the reliability of a client.
Lack of credit in the absence of guarantors
For loans that do not require additional collateral, it is expected to increase the credit risk for the bank. Without confirmation of solvency and without additional security, the risks can be covered only by worsening loan conditions.
One of the major drawbacks of the lack of collateral when applying for a loan is an increased interest rate.
This is a completely standard practice – borrowers who do not have the option to provide guarantees to the bank are forced to issue loans on terms that are noticeably inferior in terms of standard benefits. Therefore, it is advisable to note the shortcomings of such proposals. Among them:
Increased interest rate – If the program provides for a range of interest rates, then with respect to such borrowers, the interest will always be closer to the limit value.
Restrictions on amounts – the bank will not risk large amounts, issuing a loan to an untested borrower, so the final value may be the arithmetic average of the amounts indicated in the program.
Relatively tight deadlines – long-term relationships are not arranged in a simplified manner, but exceptions are possible here.
A small probability of approval of the application – a high percentage of refusals due to high credit risks is found in almost every bank.
It is important to know that the exclusion of the requirement to attract a guarantor and the provision of collateral does not imply the absence of a requirement to confirm solvency.
At the same time, the absence of a credit history is regarded by banks as not the most favorable circumstance. Given that credit history is the only criterion for assessing the reliability of an applicant; its absence will serve as a basis for refusing cooperation. The same applies to cases where the borrower’s credit history is corrupted.
If you receive a valid loan in cash without guarantors, you can provide additional documents. For loans, the amount to be processed can be up to several million rubles. If the bank does not insist on attracting guarantors and does not require collateral, the organization will be able to cover its risks only at the expense of an increased interest rate and some restrictions on the amount of the contract. The big advantage here is the ability of the borrower to lower the interest rate during the execution of the contract. Such conditions are offered by most of the largest banks.