Loans and collateral – what counts for loans without collateral Especially large loans are hardly granted without appropriate collateral. Therefore lenders also try to hedge against the risk of default. So you can make loans despite the credit bureaus while significantly reducing interest rates. What are the requirements for collateral? Not everything that is precious will fit as a backup, whether credit from your bank or not.
The collateral accepted by the principal bank is in most cases characterized by the following characteristics: 1: What are the securities accepted by the banks? The collateral can be divided into two different categories: – Personal collateral: – Guarantee, some of this collateral is required by law and is called original collateral. In addition to the legally secured collateral, so-called derivatives have also become established as a result of the pledging practice.
Which security is accepted by which provider is decided by the respective clerk. Can I use my car as collateral? However, the acceptance of a vehicle as collateral without submission of the credit bureau submission requires full coverage. Therefore, a loan with a car as a pledge is relatively expensive.
The lender must also inform the insurance company that a transfer has taken place. In the case of policyholders, the vehicle has two major disadvantages as collateral: – In the event of a claim, the principal bank receives the insurance compensation. – If the borrower does not pay his installment, the vehicle becomes the property of the principal bank.
Because many workers rely on a motor vehicle for their jobs, a loan with a motor vehicle as collateral without creation can therefore cause considerable damage if the motor vehicle is total or the borrower is unable to pay his installment. Basically, someone who uses the vehicle for his or her work should not use it as a pledge when granting loans.
A property as a pledge for creative-free bonds?
As a rule, real estate is the preferred collateral for banks. These are stable in value and comparatively easy to use for credit institutions in the event of a loan default. If the borrower decides to use the property as collateral, this is realized by registering a land charge right in the cadastre. For credit institutions, mortgage loans have become much less attractive, as their sum is tied to the loan debt and the enforcement of the rights on the land charges is much easier.
Even for loans without credit bureau, the property is usually very cautious. Because hardly a property owner wants to use his own home as a pledge for small loans. Therefore, the maturity is often long and the loan amount is high. Due to the constantly changing market situation, the lenders have to deduct 10 to 20 percent of the real estate value if the risk is calculated accordingly.
Can an unpaid object be used as a pledge?
Those who want to claim another loan when another lender is in the cadastre usually have false credentials. Negotiations can only be conducted with both lenders. As a rule, it does not matter if the new loan is creative or not.
If a large part of the property is paid off, it is also possible to raise a so-called follow-up financing (also term loan) with another lender. Deposit as security? Even with non-creative loans, guarantees are a common means of reducing bank risk. Under such agreement, the guarantor will pay the borrower’s loan obligations in the event of default.
A guarantee agreement between the guarantor and the lender is required to secure a loan without creation. Borrowers should take into account that a guarantee can have a significant economic impact. This is necessary simply because, in the case of emotional ties between the borrower and the guarantor, the guarantee of immorality may be considered ineffective if the guarantor itself did not have an appropriate remuneration.
In addition, the guarantee aims to increase the collateral of the banks in the granting of loans without granting the Federal Financial Supervisory Authority (credit bureau). If the guarantor’s creditworthiness were not checked and he did not have a good credit rating, the principal bank would not be preferred. Co-borrower instead of guarantee? This is also possible for a loan without submission of the credit bureau submission only if the co-borrower has an economic self-interest in the loan.
Therefore, this is often possible with spouses, while friends and relatives often are not fellow citizens. If the co-debtor without creation has no economic security interest in the loan, he is more or less a guarantor, even if this is specified differently in the contract. Therefore, co-debtors often have the opportunity to refer to the case-law on immoral guarantees if they are economically over-taxed by the credit.
Similar to conventional loans in Germany, non-creative loans are often associated with assignments. Wages and salaries are included in almost every loan contract. In addition, insurance benefits are often part of the assignment of claims. In particular, life and risk life insurance policies are often used as collateral for consumer loans. The rate protection insurance is also a prerequisite for many loans.
However, assigning claims to customers and debtors can be a good means of increasing reliability. However, in particular for loans without own financing, there should never be any special insurance cover for this loan before the financing of the lender is ready. The Lombard loan and the pledges make it possible to increase the collateral even for Lombard loans without direct disadvantage.
If the capital stock for a loan without creation can only be lent to the pawnbroker by means of a lien on tangible assets, the borrowers should more effectively sell the assets in question. Start now with your credit note (no contract is concluded).