About unsecured loans

The advantage of unsecured loans is that they can be obtained without collateral or guarantors. Many borrowers may not have suitable assets or guarantors, making it much more difficult to obtain many other loans. An unsecured loan can make it easier to finance your day-to-day expenses or sudden financial needs, but borrowing should never be a rash decision. The loan must always be paid with any interest, and the longer the loan term, the higher the cost of it. Because lenders do not have any “collateral” on unsecured loans, interest rates are often higher than the interest rates on secured loans. Thus, in the case of unsecured loans, lenders have nothing to compensate for their own losses if the borrower cannot fully repay their loan. Therefore, interest rates are slightly higher than for secured loans.

Quick loans

Quick loans are loans for a small amount of the order of 100 to 1000 euros, which can be obtained very quickly, and they do not require collateral or guarantees. They are usually designed for a period of 1 to 3 months. Fast loans often have high annual interest rates, and therefore are very expensive loans that should be avoided or repaid very quickly. The only advantage of a quick loan is that it can be obtained very quickly and without unnecessary questions. Some quick loan providers offer you to take out your first loan for free, but it is important that you repay the loan within the agreed period, as interest rates are often very high.

Consumer loans

Consumer credit is usually intended to be used for some kind of consumption. There are several different names for consumer loans, such as repair loan, vacation loan or personal loan.

Consumer loans are similar to fast loans, as they are also easily and quickly taken online without providing collateral, but usually with an expanded range of questions to conduct a deeper assessment of the borrower’s solvency. Consumer loans are issued for a much longer period, in fact up to 10 years. Because they have a much longer maturity than fast loans, they also have lower annual interest rates, and in some cases can be just as cheap or cheaper than bank loans.

Consumer credit can also be obtained in the form of a one-time loan or a continuous flexible loan. A one-time loan is a fixed amount of credit that is granted and debited in full at one time. After receiving a one-time loan, repayment begins in fixed monthly installments. Consumer credit can always be repaid ahead of time without additional costs.

Flexible loans

A flexible loan is a type of unsecured loan. It can be withdrawn to the bank account in several parts according to your needs. The loan applicant is provided with an unsecured loan, which can be withdrawn in small parts or in full to their own account. A flexible loan is usually a relatively small loan of 1,000-10,000 euros. On a flexible loan, interest is paid only on the amount received. When the loan is repaid, the same amount will again be available for withdrawal. So it’s a permanent loan that works like a credit card.