As a rule, when you want to apply for a payday loan it is necessary to provide guarantees to the bank, i.e. a document certifying that the applicant receives a fixed income:
- employees will present the paycheck;
- self-employed workers the single model;
- pensioners the pension slip.
And who doesn’t have one of these documents? Is it automatically excluded?
Payday loans Without Guarantees: the types
There are alternative types of financing that give the possibility even to those who have no income to apply for a payday loan without guarantees.
The categories referred to are:
- the unemployed;
- the students;
- workers without a regular employment contract.
In order to obtain a payday loan, they can apply for two types of loan:
- financing with guarantor;
- loan changed.
Loan with Guarantor
The loan with guarantor consists in being able to resort to a third person who takes on the task of presenting the guarantees to the bank in place of the loan applicant.
It is a rather delicate choice, since in the event that the beneficiary of the loan does not repay the sum, the guarantor will be obliged to pay the installments, becoming a direct debtor to the credit institution.
The other type of unsecured payday loans are the changed loans, requested by all those who do not have a demonstrable income but who own real estate.
The asset is given as a guarantee to the credit institution, which will issue bills to be paid to the applicant within the established deadline.
In the event that the debtor does not pay the bills of exchange, the creditor may request the attachment of the property, sold at auction and will recover the sum disbursed from the proceeds.
Unsecured payday loans: student loans
Among the categories of unsecured payday loans, students deserve a separate paragraph, to which small loans are provided to pay for the expenses related to the continuation of studies. From the purchase of books to the rent and not for other expenses.
Once the school education is completed, students can return the money in a single installment or after a year with low interest rates. We recommend that you read the following study on student loans.