Month: December 2019

In short, a credit for free use means an installment loan with no purpose limitation. If you plan to take out a loan, the bank often asks first about the purpose. With this, she wants to find out whether there is any collateral for the loan. For example, this can be your own home for a real estate loan or the vehicle for a car loan. In order to then receive this loan, you must prove the intended use. If, on the other hand, you have opted for an installment loan without a purpose, you can decide for yourself what you want to use the money for: for example, for the long-awaited vacation, a new TV or chic furniture.

Unrestricted credit: the benefits

A loan that focuses on free use has the same advantages as any consumer loan. There is, for example, the ability to plan, because with an installment loan, the interest rate remains the same over the entire term. Since the rate you pay to the bank every month also remains constant, you know exactly what costs you will have to pay. You also have the option of fulfilling your wishes even without your own reserves. However, there is one clear advantage that a free-use loan has over a purpose-built loan: you do not have to specify a purpose and therefore do not have to provide security evidence. Only your household budget and your income influence the desired loan amount. So you can use the installment loan for whatever you want.

Better interest rates if you specify the purpose of the loan

If you want to save, you should check whether a loan with a earmarked purpose is better suited to your request. This usually offers lower interest rates than a non-earmarked loan because the purchased item serves as security for the bank, which you can attach if you are unable to service the loan. If you want to buy a car, for example, you should use a special car loan: For this you have to present the purchase contract to the bank as proof of use and in return receive a cheaper interest rate for the financing.

In order to bring your home up to scratch, you can use a modernization loan or a home loan. This holds particularly low interest rates for property owners. In order to be able to enjoy them, you must provide a land register extract as proof that you also own the property. While proof of use must be provided for a building loan, this is not always the case for a modernization loan. Some banks require the submission of an action plan as proof of use, while others want to see the invoices of the craft businesses. At some banks, however, it is also possible to take out a modernization loan without proof of use – then all you have to do is submit an extract from the land register.

Incidentally, debt rescheduling can also be used for a loan: You can use it to combine existing loans into a single one and thus benefit from a lower interest rate.

Calculate interest on a non-earmarked loan

If you want to take out a loan without proof of use, you should do one thing above all: compare. Because every bank offers different conditions. The most important comparison criteria are the annual percentage rate and the term. You can use our installment loan calculator to find out what costs you have to expect and how much the monthly charge would be. If you would like an individual offer for a loan with free use, our installment loan specialists will help you with a personal consultation. In it we go into your current life situation and compare the interest rates of relevant banks for you free of charge. You will then receive a non-binding proposal for a loan offer from us.

Often you find yourself in the need to apply for a loan from a lender without knowing if you have the right characteristics to obtain it. Asking yourself this problem is at least fair, in fact all banks make rigorous checks on borrowers before granting them. The ways to implement a loan are the most nonsense and very often it is not possible to understand which one is best suited to your needs. Loans exist for the purchase of certain consumer goods, for example, and these are the easiest to obtain as they basically translate into a loan without guarantees.

How to get a loan without collateral?

This means that the financial company will be willing to disburse the requested sum simply by virtue of an agreement stipulated with the supplier of the asset. For this reason, in the particular forms of guarantee will be requested from the customer, who will simply have to be able to demonstrate his monthly income. Alongside these types of financing, however, there are many others, some of which explicitly require ancillary deeds that better guarantee the lender.

Obtaining a loan without guarantees, therefore, could be more difficult for those who want to take out, for example, a mortgage with a bank. In fact, almost always, the lender will want to be more protected from the risk of insolvency when there are significant figures at stake. For this reason, a mortgage is usually applied in case of purchase of property. This must be transcribed in the appropriate register and serves to guarantee the creditor in the event of non-payment of the installments due. In fact, it will take precedence over the other creditors of the defaulting subject, for the satisfaction of its credit on the object in question. Then he can proceed to auction the property to try to repay the invested capital.

If you do not respond to the classic fees sought by the bank, you could see your request for funding refused without necessarily having to offer more information. This is because the lender tries to keep themselves safe from any bad business. In fact, if the applicant were to find themselves in situations of economic difficulty, it would be more difficult for the bank to get what it deserves. For this reason, the figure of a guarantor, or a third party with respect to the parties to the original contract, may also be requested, which guarantees the payment of the residual debt in solidarity with the main debtor.

Very often this is sufficient to be able to access a loan that would otherwise be refused. Getting a loan without a guarantor, however, is not impossible. This is very simple when the applicant has sufficient income which does not cause fear for his insolvency. Usually it is calculated around 20-25% of the monthly income, the maximum amount that the installment should have. This calculation serves to insure both parties during the relationship. In fact, in this way the bank will always be sure of receiving timely and need payments and, on the other hand, the debtor will almost never be in a position to fail to pay its installment.

Get a non-repayable loan

Furthermore, for some categories of subjects, much more favorable market conditions can be found. Some institutions, and also the European Union, periodically offer calls to obtain a non-repayable loan. This usually happens for young entrepreneurs and has the function of trying to give new lifeblood to the whole economic system. Very often they are also intended for particular product sectors, such as agriculture.

In this way, in fact, we try to give a new impulse to an essential sector for global development which, otherwise, would be left too far apart from other activities. These funds make these markets attractive again and allow their livelihood and development. Calls are also made for female entrepreneurs to obtain a non-repayable loan. These are characterized by the lack of a return obligation. Basically, you get some capital that you don’t have to repay, or not entirely. This is certainly a valid help for those who want to start a certain type of business. In fact, the initial costs for a new company are always high and being able to count on a subsidy of this type is sometimes decisive.

Get an unsecured loan with low sums

The unsecured loan is also granted when it comes to relatively low sums. For example, even a person with a fixed-term contract could get one. The important thing in these cases is that the loan amortization period does not obviously exceed that of the employment contract. If the limits indicated by the lender are respected, there are no problems in providing the loan, especially if they are loans aimed at the purchase of a specific asset.

Obtaining a loan without guarantees, therefore, is possible, the important thing is to always be able to meet your contractual obligations. If you have a constant income and no gradients, you belong to a particular group of consumers, or you are not dealing with very high sums, the bank will be able to grant the financing even without the need for particular accessory guarantees. This type of guarantee, such as a pledge, a mortgage or a guarantee, are useful tools for credit institutions to reduce the specific risk of the transaction, however they do not necessarily have to be used in every transaction.

Indeed, they are usually affixed when the convenience calculation carried out by the professional operator shows some problems in the expected profit for the same. In these particular cases, the bank will rightly want to protect itself from any liquidity problems that would not arise from its ordinary management. The financial law is very detailed and always tries to protect the customer who is seen as the party with the least contractual power. For this reason you can always assert your rights and try to get a loan without a guarantor. If you have all the required features, you can legitimately expect to receive a positive response from the bank. In this case, the applicant will then make sure that he has understood all the main contractual clauses.

To obtain a buy-back of consumer credit in simulation , just do a credit consolidation simulation. You indicate all your consumer loans to include in the loan redemption. We are here to find the best rate for your credit redemption.

Why buy a consumer credit simulation?

To get a mortgage simulation

Indeed, you have ongoing personal loans, conso credits and credits online (easy money reserves to get), but you want to quickly obtain a mortgage. It is therefore urgent to consolidate all your consumer credit. A simulation credit redemption tells you the future monthly payment of your single credit. You can request a credit simulation for your real estate project with a reduced debt through the pooling of credits.

To anticipate a change in income

Your employment situation will change following a move. You prefer to breathe the air of the province or the countryside rather than the pollution of the big cities … But, the salary is often lower. So much to anticipate. By making a credit redemption, you reduce your maturities to face a decline in your income. It is the same for a retirement: the purchase of credit personal loan can anticipate this consequent decline in your resources.

To realize your new projects

You want to get a credit work, without making a real estate loan redemption. As for a consumer credit simulation, you will make a credit redemption online to significantly reduce your monthly payments and at the same time solicit cash for your projects to achieve. The purchase of credit in online simulation tells you the feasibility of your request.

Reduce interest rates and maturities

The purchase of consumer loans can reduce deadlines, reduce your budget and especially reduce interest rates. Indeed, the rates applied for money reserves (also called revolving) are often close to 20% for amounts below dollars 3,000. Interest rate risk indirectly affects many investments, but it directly affects the value of bonds. Bondholders, above all investors, carefully monitor interest rates.

A simulation of real estate loan repurchase is systematically carried out to calculate the realized gain and the interest of this financial transaction.

Regrouping its credits can also get out of excessive debt situation and rebalance its budget and leave calmly.