Loans to protesters and unemployed bad payers are possible? Under normal conditions, a credit institution or finance company to provide a loan requires certain guarantees to prove a certain and demonstrable income, namely the pay slip, the pension slip or for the self-employed the income tax return. However, loans without a pay slip or pension as collateral become particularly difficult to obtain if the databases consulted by banks and financial institutions in the preliminary phase to assess the creditworthiness of the applicant have been reported negatively in the appropriate databases: how to do in these cases ? In the guide that we propose below we try to explore all the possible ways to finance loans for protesters and unemployed bad payers presenting alternative guarantees, and try to get the necessary capital to solve their problems and carry out the projects you have in mind. An editorial over at otagorally.net
Loans changed for the unemployed
The most convenient solution for loans to protesters and unemployed bad payers, the one that has the greatest chances of disbursement, are the so-called loans, non-finalized loans that various credit companies propose for those who cannot have normal access to loans and mortgages : in this way a capital is obtained quickly, to be repaid precisely through bills of exchange that expire each month. The bills, unlike the classic installments of a personal loan, they are debt securities issued in the form of “drafts” or “promissory notes”, on which a stamp must be imposed, and must be signed and completed in all their parts, including the indication of the support bank. The rate applied is fixed and the installments are constant, but the deadline can be postponed by agreement between the parties. The most important feature of the bill, however, is that it allows the creditor to immediately initiate a procedure for the attachment of the debtor’s assets in the event of failure to pay the fees, without having to wait for the go-ahead from the court judge. With a loan with bills a protested unemployed or bad payer can request between 2,500 and 50,000 euros, choosing repayment plans varying from a minimum of one to a maximum of 10 years: let’s see in detail how it works.
The requirements to obtain them
In theory, access to the loan is less difficult compared to a normal personal loan, as this form of financing is virtually open to everyone, although in particular the number of customers interested in this loan, which usually has a much higher interest rate compared to a normal loan or salary-backed loan, it is characterized by subjects who for various reasons cannot obtain a normal personal loan from a bank. To obtain a loan, you must still present as a guarantee:
- Copy of an identity document
- Health card or tax code
- Copy of TFR if you are an employee
- Copy of the tax return for the self-employed
- Signature of a guarantor for unemployed
A guarantor who is responsible for paying the installments in the event of insolvency on the part of the loan holder is usually required for the unemployed, who can thus hope to actually get a sum of money that a classic bank would certainly deny in the absence of necessary guarantees. Often a life insurance policy is also required, which necessarily involves an additional cost on the overall loan: to assess the actual convenience of the loan with bills it is advisable to always carefully observe the APR, the Global Effective Annual Rate, a percentage value that indicates the set of costs and tax burdens on the customer: the higher its value, the more expensive it will be to subscribe to the loan.
Advantages and disadvantages
Are the loan changes really cheap? It is not easy to answer this question, we must consider as a starting point that trying to get loans for protesters and unemployed bad payers is not easy at all, and sometimes this is the only real prospect possible for those who find themselves in these delicate situations. However, wanting to parameterize the pros and cons of the financial transaction, here is a list of possible advantages for those wishing to stipulate financing with bills:
- Possibility of payment to protesters and bad payers
- Quick time for preliminary investigation and disbursement
- Amounts of money with substantial amounts
- Variable repayment times
- Possibility to postpone and renew bills of exchange
As we have already anticipated, there are also the disadvantages of these promissory notes or exchange notes if you prefer, among which we highlight:
- High interest rates and ancillary costs
- Very often the need to take out an insurance policy
- Assignment of assets even in the event of failure to pay a single bill of exchange
If there really are no other alternatives, it is perhaps worth taking the risk and signing loans that have been loaned by protested unemployed or bad payers, but it is also possible to evaluate other financial routes, which are not easy to cover, but which could allow them to obtain even a sum small presenting alternative guarantees, without running the risks inherent in the loan with bills of exchange.
Loan with guarantor
Addressing a credit institution or financial company without guarantees such as a pay slip, and even more so with negative reports such as protesters or bad payers, it is not possible to obtain any kind of financing, but if you have a person with solid economic guarantees and a proven one. creditworthiness you can try to obtain a surety, so a third person acts as guarantor for the applicant. This solution is usually proposed for young people, those who are not registered by the databases because it is the first request for a personal loan, or have excessive borrowing: it is therefore worth making an attempt to request loans to protested unemployed and bad payers under this form. From a technical point of view the loan with guarantor is a double signature loan, so this third person, who is generally a family member also by preference of the bank or financial institution itself, assumes the responsibility deriving from a possible insolvency of the personal loan holder. This means that in the case of unpaid installments, the third party guarantor of the loan is obliged to pay the aforementioned installments by the deadline established with the financial company or credit institution, and as indicated by the repayment plan.
How the financing works
In the event of non-payment of installments, the guarantor is not informed by the funding body, but as a co-responsible manager it is up to him to check that there is a regular repayment by the owner of the loan, since it is his own interest so that he does not have to pay in place its provisions in depreciation. How do you request a loan with a guarantor? Simply go to the finance company presenting the documents certifying the guarantor’s income, which will then have to sign the loan contract with the applicant: before giving the final green light to the loan, the bank or financial body verifies the creditworthiness of the applicant by checking that he himself is not protested or bad payer as the applicant. In fact, the lending institution must be sure not only of being able to make claims against the guarantor in the event of non-payment, but must lower the potential risk of insolvency by avoiding having to rely on courts and collection agencies to resume what was provided.
Characteristics of the guarantor
Now let’s see what must be the characteristics of the guarantor recommended by the experts of the sector, so that they increase the chances of obtaining a capital: this third figure should be
- A first degree relative, better if living in the same household or spouse or partner, since the family relationship is considered one of the requirements that give added value for the success of the application
- A subject without negative data in the databases and not being excessively indebted
- Have a certain and demonstrable income, able to sustain the amortization of the debt
Furthermore it is good that the guarantor of a personal loan is aware of some details of the financial transaction that could reverberate in his credit future. In detail,
- If the guarantor in the near future needs to request a new loan, the current one must be paid regularly, otherwise it runs the risk of a rejection of the loan application.
- The current personal loan installment reduces the percentage of monthly income calculated for the repayment of new loans
- The guarantor will have to worry about the regular amortization of the personal loan for which he has signed as co-obligated as the funding body is not obliged to inform him of the missed or late payment of the installments, resulting in this sense when there is only a mere courtesy action
How to apply for a loan for unemployed without a guarantor
Whoever is in the condition of not being able to apply for a loan with guarantor, and would not like to venture into the payment of a loan with bills of exchange, can try to submit a personal loan application with real guarantees alternative to the classic ones like the pay slip, and this wants to say that the unemployed person must play with strength by making their own movable and immovable assets available to protect credit: it is not at all obvious to obtain loans for unemployed bad payers and protested in this way, however if you want to try to get a sum of money with such alternative guarantees, here are the possible solutions:
- Mortgage on a building
- Income from a restricted capital
- Credit on pledge
Let’s briefly see the advantages and disadvantages of each of these three possible alternatives.
Mortgage on a building
Having a property owned is a very solid guarantee for an unemployed person looking for a loan, as it is possible to apply for a mortgage through this property without losing possession of the property, but there are contraindications: the mortgage on the home in fact it is usually accepted by a credit institution only in the face of a very high amount of money, since in the event of insolvency the bank must put in place a complex procedure to recover the money through the asset, and there would be no convenience in case of a modest amount of financing.
Having any form of annuity on a tied-up capital can help to obtain a loan, without thereby dissolving the interest-generating bond and which may not be convenient to release. However, there are sufficiently stringent conditions for a credit institution to grant the green light for financing with this form of guarantee: in fact during the preliminary investigation phase, the financial company will request the applicant to have certifications that guarantee the ownership of the aforementioned income by the applicant for the entire agreed period for the complete repayment of the debt including interest, otherwise the refusal to proceed with the disbursement of the capital required.
Speaking of real guarantees, it is also possible to make a pledge of tangible assets available to obtain a cash loan corresponding to the estimated value of the asset itself: in this case there is first an evaluation of the asset to be committed, and subsequently the appraisal is disbursed the capital. In case of regular payment of the debt the legitimate owner of the asset will regain possession of the assets committed at the end of the depreciation, while otherwise the financial company is in the need to auction the material property offered as a pledge, so as to get back the disbursed capital.
We must be aware that requesting loans to protesters and unemployed bad payers involves many difficulties in obtaining a capital, since the complete absence of income guarantees, with the addition of negative reports to the end-to-end knowledge company or the Registry of Protests, put the subject applicant in an extremely delicate condition. The best way to be able to see even a small sum of money is to try to request a loan with bills through a guarantor, while already turning to a credit institution, even with a third person with solid guarantees in support of the demand, does not ensure no green light for financing. There are not many ways to go as we have seen in this guide, but at the end we can also suggest the possibility of contacting an expert consultant to find together the best solution for your individual case, and at the best possible financial conditions.