Loans without a register and collateral are the domain of non-banking companies. These loans are granted without consulting the debtors’ register, so the past repayment history or the applicant’s current debt are not addressed. Being a more risky loan to non-banking institutions, it often involves higher fees and interest. Who offers the cheapest loan without a registry and under what conditions?
A loan without consulting the debtors register is a popular type of non-bank quick loans. They are usually provided within a few hours of the application.
Usually it is necessary to have a bank account to which the money will be transferred, but some providers allow the loan to be drawn in cash.
Pursuant to the amendment to the Consumer Credit Act, all banking and non-banking companies are obliged to verify debtors’ registers with loan applicants. For applicants who are in the register, this means a significant reduction in the chances of getting credit with most banks.
If someone fails to pay their obligations on time (loans, internet invoices, public transport penalties, etc.), they can find themselves in the debtors’ register. There are even a few.
Although by law the lender has to check the register of debtors, this is often not the case.
However, non-banking companies often circumvent this obligation or do not give it to the register. It is necessary to realize that non-banking institutions are aware that they are coming to people who seek precisely this circumvention of the law. Therefore, they often charge high fees for loans without a register or collateral.
To whom are loans without a register provided?
Loans without a register and collateral are most often provided to risky clients. No mortgage of the property and does not prevent the register of borrowers from being reflected in the amount of interest and fees that are higher for loans without a register.
Non-bank loans without a register and collateral are immediately provided to people without work, with debts or with too low income.
Comparison of loans without register and pledge
There are several subjects who do not look into the register and it can be difficult to know their offers. Therefore, a comparison of non-bank loans without a register with the current conditions of individual loans is prepared below.
SMS loans may be easy to obtain, but it is usually not long-term to try to repay them as soon as possible.
If someone is looking for small loans in hundreds or thousands of crowns for a shorter period, they will find such a product among micro-loans. These loans are mostly provided for a few weeks – so they often have APRs in millions of percent. It certainly does not pay them in the long term.
Advantages and disadvantages of loans without a register
In terms of loans, in the banking sector, people with a record in the register have no chance at almost any bank. Among non-bank loans, however, the situation is much more favorable to them.
However, it is always necessary to consider whether it is worth borrowing. Like other non-bank loans, a quick non-bank loan without consulting the register and collateral brings many advantages and disadvantages.
Advantages of a loan without a registry:
- People who have several debts can also get a loan
- Arranging a loan is quick and easy
- You can arrange a loan online
- A loan without a registry can also be free, with no interest and no fees
- smaller loans are without collateral
- no income is shown
On the contrary, the disadvantages of loans without a register and collateral include:
- it is provided only by non-banking companies
- only small amounts can be borrowed without collateral
- at higher sums it is still necessary to have a pledge
- short-term loans
- high fees and APR
- necessity to have your own bank account (cash can be obtained eg through loans on the weekend )
Banking institutions have much stricter conditions and they check their clients more. In contrast, non-banking companies focus on so-called risk clients and lend to people with debts. In return, however, comes with several disadvantages. Such as having to have your own bank account, which verifies the requirement to send a fee of $ 1.
If the applicant does not want money in his account and does not have a bank account, he can apply for a so-called weekend loan, which brings cash in cash. If an individual does not want to arrange a loan online, they can apply for it by telephone – the so-called SMS loan.
Interest rates and fees for loans without a register
For fast loans without a register, the APR, ie the annual percentage rate of charge, is often very high. At the same time, interest rates that would be covered by either collateral or detailed control of the borrower for other loans are high.
An applicant for a loan without a register immediately should focus on the amount of fees. That is, how much they will pay for the loan. Some companies charge fees for arranging a loan, for managing it, and sometimes we find other hidden fees. In general, non-banking companies need to carefully read the contract and best give it to someone else to read.
Non-bank loans without a register tend to have very confusing contracts, one should read them very thoroughly.
Early repayment of the loan is free, but you must know about this plan provider to inform in advance. The applicant should trace the early repayment item in the contract before signing it.
Conversely, the fees for late payments or underpayments are very high indeed. If you know in advance that you will not have enough money, you should immediately inform the provider and agree on a possible deferred payment
Loans without a register without a register and with collateral
For those who have an entry in the register of debtors, but at the same time need to borrow a large sum of money, the solution may be a non-bank loan without a register, but with a mortgage.
In order to obtain it, the client must own a property (eg an apartment, a house, a holiday house or a property) and, on the basis of its value, be granted a loan. This loan will be secured by this property, thus reducing the risk of losing money to the provider. This will allow them to offer lower interest rates and more favorable terms.
The most common example of such a loan is non-bank mortgages.
However, if the debtor fails to repay properly, he may lose the property. As mentioned above, any repayment problems need to be addressed immediately.
Alternatives to non-bank loans
At present, according to statistics, the number of indebted persons is still increasing. Many people cannot manage their money well or find themselves in a difficult financial situation. In general, one should not be indebted because of uselessness. If it is necessary to pay some unexpected amount, it is always better to first go to relatives or friends and ask them for a smaller loan.
Before each loan you need to use the online loan calculator, review the reviews and profitability of the loans and possibly think about another solution.
For some, instead of a debit card, the solution may be to purchase a credit card for a current account, which pays off for medium-sized expenses due to the interest-free period. Alternatively, set up an overdraft facility for your bank account and thus be able to overdraft it.
If a person’s debt is represented by one big loan, it pays to think about refinancing. If there are more loans, it almost always pays to apply for loan consolidation. Loans will be unified, reducing interest and fees.