In relation to loans, the very frequently discussed issues are the issue of loans to indebted persons who have several different debts, or are burdened, for example, by executions. Debt-borrowers are in a very difficult situation, because finding a suitable and at least somewhat advantageous loan is very difficult for them, such clients are very risky for providers. Still, serious loans can be found that can be borrowed by indebted people. What types of loans are there and where are the best ones to be found?
Bank loans for indebted candidates are not possible
If you are in debt and want to borrow money from a bank, there is no point in making a request. Banks never lend money to people with a record in the debtors’ register (whether it is a known SOLUS registry or other registers), nor do they provide loans to people in execution or insolvency. Banking institutions are very cautious about whom they provide the loan and are very thoroughly checking clients. On the other hand, there is still a non-banking sector where the situation is very different.
Non-bank loans offer several options
There is very strong competition among non-banking companies, and many of these providers also target very risky clients who are at increased risk of having repayment difficulties. Some indebted candidates also have a chance, but they have to expect that non-bank loans are more expensive than bank loans and interest rates are considerably higher. As a rule, we can meet two types of non-bank loans, where they can also achieve debt – this is the so-called SMS loans and then on loans with property guarantee.
Fast microloans with short-term maturity
These small loans are sometimes referred to as SMS loans or pre-pay loans, and are only small and short-term loans that are usually offered for a maximum of 30 days. Since the conditions are very mild, the amounts are not very high – mostly only a few thousand, especially when it is a new client. But these loans are in some cases beneficial to almost everyone – some companies offer the first free loan, which is completely free of interest and fees. However, it is important to keep an eye on its maturity – usually it is 30 days, but sometimes it can be a shorter time – for example, a new Kamali loan is free only when paid within 14 days.
Loans with property pledge
The opposite of SMS loans are non-bank loans with real estate. These are both long-term (you can spread the repayment for 10 years, for example), of course there are high amounts – their amount can reach up to millions, depending on the pledged property. The loan is always secured by a suitable property (it may be a house, an apartment, a cottage or a plot of land) and one of your loved ones can guarantee this. It is no longer necessary to prove income thanks to collateral, nor to register in the registers. This type of loan is a possible solution for the indebted, who need to borrow a high sum and have a property they are willing to guarantee.
For debt, fraudulent lending offers a major risk
Indebted people should be particularly careful when choosing a loan – because many offers are downright fraudulent and aim to lure money out of trusting people. Always check your loan provider on the internet, read reviews and choose carefully. Always avoid those who want to pay a high fee in advance or offers where you need to call a paid number first. On the contrary, it is ideal to use one of the independent web comparators, such as our website, or other portals.