LOAN WITHOUT COLLATERAL
If you want to borrow only a small amount of money from a bank, then you are talking about a small loan and this loan is usually without collateral, which in turn does not mean that no credit check takes place. If you want a loan without collateral and without credit bureau information, then you have to contact a Swiss bank.
What do you have to fulfill to get a loan without collateral?
Usually, most loans are granted today without any special collateral. Unless you want to take out a loan for a new car or a property, then you must already be able to provide collateral such as the vehicle registration, a life insurance, a land register entry or a pecuniary assignment. Especially for a bank, the credit check means a lot, because it determines whether the customer can repay the loan at all. credit bureau information is obtained for this purpose, but a regular income and a permanent employment contract also play a decisive role in lending. Again, a negative credit bureau entry can give conclusions about the payment moral of the applicant.
What alternatives for a loan without collateral exist?
In particular, a Swiss loan corresponds to a loan without collateral, because these are awarded even without obtaining a credit bureau statement. As a rule, the Swiss bank only checks whether one is in permanent employment and how high the monthly income is. In principle, Swiss banks only lend up to 3,500 euros. But if the regular income is too low, then the bank will require even more collateral. For example, you can lure a bank with a guarantor whose creditworthiness is impeccable. Another way to borrow money is to ask friends or relatives for a loan, because here you can be sure that the interest rates are very low or not required.
In addition, one will also be flexible in the repayment of the borrowed money and as you know, usually no collateral as required by a bank. Banks, in turn, are primarily looking for collateral because they need to minimize their economic risk or potential default risk. After all, banks live on lending money and then receiving interest. In any case, if you take out a loan from a bank without collateral, you have to assume that you also have to pay the bank’s risk. Therefore, just these loans are much more expensive and also have higher interest rates than current loans. Normally, the amount of credit is also fixed, but the terms usually flexible negotiable.