The unsecured loan is a loan from a creditor institution (a bank or a financial institution) and is marked by the absence of real guarantees (pledge or mortgage). In other words, and subject to the necessary simplifications, it is a loan in which only the applicant’s signature is required as a substantial “guarantee” of solvency.
What are the unsecured loans available?
Without prejudice to the above, the unsecured loan can be assimilated to any personal loan, to a salary or pension transfer, or to a loan of honor: technical forms which, subject to infrequent exceptions, are without guarantees of real nature.
The loan is also included in the unsecured loan (in this case the main guarantee is represented precisely by the existence of an immediately executive debt) and the finalized loans (those that are intended for the purchase of small assets, and they are usually brokered directly by the reseller who sells the asset being financed).
Unsecured loan, signature is sufficient
On the basis of the foregoing, we can therefore summarize again the concept according to which in the unsecured loan the only guarantee required by the bank is the “signature” of the applicant or guarantor, who in turn will provide the credit institution with sufficient solvency assurances by the presentation – during the preliminary investigation – of documentation capable of demonstrating one’s income.
How much to get with an unsecured loan
Being able to provide the bank with less guarantees than the mortgage loan , the unsecured loan is generally granted by the credit institution for smaller amounts than the mortgage with a mortgage guarantee. This does not mean, however, that the amount obtainable is low: although the limit is generally 20 or 30 thousand euros (depending on the credit institution’s preferences), there are certainly few loans available on the banking system Italian, with request limits of 50 or 100 thousand euros.
How quickly to repay the unsecured loan
The unsecured loan is returned within an extended amortization schedule normally within 72 months. However, unsecured loans with repayment program durations of up to 10 years also exist on the market. In any case, the time limits for unsecured loans can hardly be compared to those for mortgage loans.
Unsecured loan: fixed or variable rate?
The unsecured loan can be paid at a fixed or variable interest rate, depending on customer preferences. However, it should be remembered that in some cases (for example, finalized loans or salary or pension assignments), the only technical form available is fixed rate.
In summary, unsecured loans are loans of a personal nature provided on the sole “signature” of the applicant and guarantor. On the other hand, real guarantees such as pledges and mortgages are not provided. Generally granted at a fixed rate, for amounts not exceeding 30 thousand euros, and for maximum durations of 5-6 years, they are the most widespread and common form of bank loans.