Why is a guarantee necessary for your personal loan?

Small personal loans

Small personal loans

Those who have already experienced the experience of requesting a personal loan through a conventional bank will know that sometimes a guarantor or an endorsement is required on some property that can cover the possible non-payment of the debt. Normally, small personal loans that are requested to cover specific and specific needs, for example, for the financing of the acquisition of a vehicle, do not require any guarantee, or at least your bank should not require it, unless your Credit history is extensive and / or conflicting.

As you will also know, banks always investigate the credit applicant before accepting the request. This ensures that the person is not included in any of the current default lists, such as the RAI, and that he has regularly paid the installments of other current or past personal loans. However, when the amount of the requested credit is somewhat high, say more than € 40,000, for example, for the purchase of a prefabricated holiday home or house, if the applicant also keeps other lines of financing open with the bank., very possibly a guarantee is required on any of your properties (already paid) or a guarantor that responds in case of non-payment.

What happens then when the personal credit return payments are violated?

What happens then when the personal credit return payments are violated?

Simply the bank, after the beginning of the corresponding judicial litigation, will execute the endorsement. This means that the bank will take the guaranteed property to sell it and obtain the money owed to it, or it will demand the payment of the debt to the guarantor by taking the property placed as collateral or by seizing the appropriate bank accounts that cover the amount of the non-payment. For this reason, it is essential that the fine print be read carefully with the conditions and terms of each personal credit before it is signed in order to avoid really rough situations.

What other alternatives do we have then to get our personal loan? Currently, the online credit sector is undergoing a surprising development in our country, precisely because it is presented as an agile and convenient alternative to the financing offered by traditional banks. The online credit agencies are also financial entities or branches / subsidiaries of financial institutions that have the same guarantees and controls. However, its modus operandi eliminates much of the conventional bureaucratic procedures and greatly facilitates the granting of financing to families, households, individuals and professionals. Without renouncing the previous investigation of the file of the applicant, the approval of the credit in many cases is almost granted in a few days (or even hours). In this way, online credits are becoming an increasingly popular option among consumers to obtain the financing they need in a timely manner without too many demands, including bank guarantees that can become a double-edged sword.

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