Loan- free money loans indicate the type of loan that does not require an additional guarantee or pledge. This means that there is no need to pledge movable or immovable property in exchange for a loan.
Most often, cash loans of up to 6000 dollars are paid, with a maximum repayment period of 90 to 150 days. Given the small sums of money, no notary certification is required. Most often, loans for money without pledge can be applied online, but also via SMS.
What are pledge loans?
Unlike borrowing money without a pledge , those with a pledge, as their name implies, require a guarantee that the debt will be repaid. As a pledge, larger and smaller values such as real estate, valuable artwork and jewelry are most commonly used.
This is a way for the financial institution that lends the money to ensure that it will repay the debt by pledging in the event that the customer cannot repay it in cash. The pledge is used as a debt collection instrument.
The pledge is not required for smaller amounts
Loan-free money loans are determined by relatively small amounts for a short payback period. Instead of giving a pledge, the client agrees to repay the borrowed amount of money at a fixed or variable interest rate, depending on the conditions in question. The process is very simple and it is enough to just present your ID and current account card.
If the amount is more than USD 3000, a bank statement and a payment or pension list are also required. For smaller amounts, no employer certification is required. It is enough for a client who seeks this type of loan to regularly settle his debts and receive a salary or pension. In a situation where you tell yourself I need money, borrowing money immediately without collateral can be your solution.
To borrow money without pledge online
The biggest advantage of borrowing money without a pledge is the extremely quick approval. In most cases, the application can be submitted online or via SMS, and the documentation is sent via e-mail. Borrowings are credited to the account the same day if the documentation is complete.
Most often, banks and other financial institutions only require a copy of their ID card and current account. If the amount is more than USD 3000, then an extract from the bank account, payroll or pension list must be enclosed with the required documentation. The account must not be secured or blocked, and in order to apply for a loan, the applicant must have regular income in the form of salary or pension.
Quick solution for emergencies
Borrowing money without a pledge is a quick solution in the case of emergencies that require a rapid cash inflow such as sudden medical expenses, minor home renovations, closing a bank account minus, car repairs, or a master’s work in the apartment.
These loans are short-term with a repayment term of 15 to 90 days, and repayment periods of up to several months are possible, depending on the amount of money requested.
How fast are loans without a pledge?
Payment can be made within 15 minutes of delivery of the signed documentation. This means that quick borrowing money sits in your checking account in the same day you requested it, which is especially important in situations requiring immediate intervention.
Given the speed of cash availability and the short repayment period, interest rates for this type of loan are on average slightly higher than for example home loans.