Liquidity – indicator of creditworthiness:
Even in times of seemingly low interest rates, it is often not easy to find the right loan. Because the Capital Bank’s low interest rate policy means that banks are reluctant to forego the usual collateral. It is therefore not surprising that a loan without proof of creditworthiness can be difficult to find. In the case of a loan without proof of creditworthiness, the potential borrower specifically searches for a loan for which no liquidity requirements are necessary.
Liquidity describes the liquid funds that the potential borrower has at his disposal. Central indicators for the level of liquidity of an individual are usually account assets, property and real estate, vehicle ownership and cash holdings. Equities, foreign exchange – in principle everything that has a value – are also determinants of the degree of liquidity.
The requested bank knows exactly that the borrower is not well positioned in these areas and therefore requires other guarantees. The extent of the collateral to be provided depends on the number and dimension of the indicator evaluation. For example, if there is sufficient account assets but no real estate, this normally does not constitute an obstacle to a positive credit decision. However, if there are no assets, cash or real estate, the loan may be refused.
In this case, there are still alternatives to get a loan without proof of creditworthiness. The best option here is to submit a valid employment contract. This should last longer than 6 months and ideally should be unlimited. The previously poor creditworthiness can be compensated in a way that ultimately leads the credit institution to approve the loan application.
Collateral increases the chances:
In principle, the following applies: the more that can be submitted, the better. If you want to be on the safe side, the employment contract also includes bank statements from the past few months, insofar as the loan application is not made to the house bank. The bank sees so quickly whether there is any money left in the month that there is no credit evidence available for possible repayments of the loan.
The punctual and regular payment of the repayment installments is an essential aspect for the credit institutions when lending. The conditions vary depending on the collateral provided, but interest should not currently exceed a certain level. It is important for the borrower not to over-commit, but only to take out loans that can be repaid without major problems.
Conditions, terms and well-being zone during repayment:
With a credit without proof of creditworthiness, as with any other loan, it is imperative to pay attention to the conditions. The starting point is the amount of the loan, the so-called loan amount. The higher the loan amount, the higher the monthly repayment installments. However, this amount depends even more on the loan term. The credit term indicates how long the loan must be repaid without proof of creditworthiness. In practice, the borrower usually has a choice of terms between 12 and 60 months. The following applies: the shorter the term, the higher the monthly repayment rates.
However, it may also be in the interest of the borrower to choose a shorter term because the monthly credit charge will then be over more quickly. But even during the term, the installments should be able to be paid in such a way that there is still money left at the end of the month. The repayment rates should not affect everyday life too much with all costs and expenses. The borrower’s sense of responsibility is required here. Although it is important to bridge a financial bottleneck as soon as possible, you should still feel comfortable in your own skin even after the loan agreement has been concluded.