Types of unsecured loans

It is well known that when applying for a loan, the grantor is usually offered some value as a guarantee of payment. However, there are also unsecured loan modalities, where this is not required.

What are unsecured loans?

Unsecured loans , as the name implies, are loans that are granted without a guarantee. They are a special type of personal loan, which does not require placing a security of its own or a guarantor.

Personal loans for the acquisition of goods, such as real estate vehicles, are not included as loans without collateral. This is because the grantor reserves the title to the property until the debt is canceled.

Now, even in these unsecured loans , the personal guarantee that is typical of personal loans is maintained. It means that the grantor has the right to act legally against your assets, in case you breach the payment. In this way, your assets continue to support the loan, but they do so indirectly.

Types of unsecured loans

Fast loans online

They are credits for low amounts granted by financial institutions through their Internet portals. You are granted demanding minimum requirements, usually only your identification document and your bank account number. You can process them quickly and remotely and approval is obtained in less than an hour.

Generally, they are granted to cancel in short periods, without extension periods and with high interests.

Loans for consumption

Consumer loans offered by banks through credit cards are unsecured loans . Therefore, these instruments have high interest rates, which often exceed 100% per year. That is why you should be careful to properly make your consumption with credit cards.

Among the consumer loans related to the card are the so-called cash advances. Also the parallel lines to the credit cards granted by some institutions. However, there are also unsecured loan modalities, where this is not required.