Easy Ways to Get a Loan Without Collateral » Voice of Nigeria
Easy Ways to Get a Loan Without Collateral – Have you ever experienced a lack of funds due to Covid-19 or other personal reasons?
Either for personal or business purposes.
If so, of course the term applying for a loan is no longer a foreign thing to your ears.
There are two types of loans that you can take, namely loans with collateral and loans without collateral.
Loans without collateral mean you don’t need to submit collateral or any collateral to the lender.
Whereas a loan with collateral means that you have to pledge your valuables to the borrower such as house certificates or motor vehicle certificates.
Loans without collateral eliminate the risk of losing assets or valuables that you have when you are unable to pay off the loan,
These loans are very profitable but more difficult to obtain than loans with collateral.
Types of Collateral Free / Unsecured Loans
1. Personal Loans
If you are a permanent worker, you can get a loan without collateral to pay for your personal needs.
If you don’t have a permanent job, a loan will be difficult to get because the lender will not trust your ability to pay off the loan.
The loan will be calculated from the average amount of your income each month to adjust your ability in installments.
If you have a large income, then the loan amount you can get is also larger.
The type of job and where you work also affect your assessment.
If you work with high risks such as in dangerous places, it is difficult to get large loans.
Meanwhile, the company where you work gives the influence of the good name and quality of the company.
If you work at a large and well-known company, your trust in you will increase.
Also read: Starting an F&B business
Another thing that is also a factor of assessment is where you live.
The reason is the location where you live will affect your lifestyle and personal expenses per month.
Someone who lives in a big city will certainly spend more money to make ends meet than people who live in rural areas.
In order for the appraisal process to be faster, make sure you complete all the documentation needed by the bank or other financial institution where you borrow.
Currently, the appraisal process for loans without collateral is faster because of the online system.
To increase the likelihood that your application will be accepted by the bank, ask for a loan in reasonable installments according to your income and where you live.
If your monthly income is only 4 million while you live in a big city, don’t expect the bank to give you a loan without collateral with a monthly installment of more than 1 million.
So look for smaller installments such as by choosing a longer loan term.
In addition, provide reasons for the use of funds that are reasonable, really needed, and where possible can produce results.
For example, you borrow to repair your house, for tuition fees, or for a side business venture.
The last reason is usually more accepted by the Bank.
2. Business Capital Loans
If you are an entrepreneur, the chances of being able to get a loan without collateral are greater.
This is even more so if you have a business that is quite stable in terms of finance and has been operating for a long time, thereby increasing the trust of the Bank or other financial institution in you.
Loans will be liquid easily if you apply to develop a business with promising prospects.
In this case, be smart in making business development proposals.
You can also apply for a loan for personal gain, but the loan amount is usually smaller than a loan for business capital.
In order for the process to run smoothly, you must provide sufficient data about the financial condition of your company along with other required documents.
If you don’t have a business yet but have a good business plan, you can apply for a business capital loan.
To make it easier for you to get a loan, make a good and detailed proposal so that it can show the good prospects of your business plan.
Types of businesses that are innovative and creative are usually more likely to be accepted.
