Thinking about how much you plan to borrow, and whether you can afford the repayments, it’s important to consider the security requirements of different personal loans. It is not always possible to get a loan secured by existing property values (real estate, vehicles). In this case, it is worth considering the programs of financial organizations offering loans without collateral.
Loans that are not secured by property are currently issued by many financial institutions and for the most part, are inappropriate, that is, they let you spend credit money the way you want to, and not for the purposes prescribed in the contract.
Can You Take a Loan Without Security Deposit
It is suggested to obtain a loan without securing it with collateral if money is needed quickly and with a minimum package of documents. Currently, the following types of loans without collateral are presented on the financial market:
- inappropriate lending both in cash and non-cash;
- express lending;
- unsecured loans for the purchase of goods or services.
The absence of collateral forces financial companies to introduce a number of restrictions that let them protect themselves and credit funds from non-repayment:
- limited loan term;
- limits on the amount of the loan are set.
Each financial institution has certain conditions for issuing loans without collateral.
How to Apply for a Loan Without Collateral
If money is needed quickly, you can get a personal loan Singapore without collateral not only in banking institutions but also in microfinance organizations. At the same time, it is categorically not recommended to take money against countersignature from private individuals, since their activity is not legal.
Getting a loan without a collateral obligation has both pros and cons, and each borrower independently determines which organization should be contacted in a particular situation. So, if the credit history leaves much to be desired, and money is needed quickly, the best option would be to contact a microfinance organization.
It is possible to issue a loan without collateral in an MFI even with a negative credit history of the borrower. Nevertheless, if there is a positive credit history, the chances of getting funds in a large amount and on more favorable terms significantly increase. At the same time, microfinance organizations establish certain requirements, the observance of which will enable the interested person to get an urgent loan guaranteed.
The decision to grant or refuse a loan is made as soon as possible. In some cases, the borrower receives a response within a few minutes. Moreover, in the absence of collateral, data verification is much faster than with its availability.