There are many young people who cannot find a stable job and therefore need more liquidity to be able to carry out their projects and dreams. In recent years, both banks and financial institutions have come to terms with this category of users in order to guarantee even young people without work and income the possibility of accessing finance despite the absence of a pay slip that testifies, therefore, the presence of a salary .
There are those who propose as a viable road that of the bill without guarantees . The recipients of this form of loan are young people, housewives, the unemployed, the self-employed, income earners. Since there is no pay slip and very often even the guarantees are small, we talk about small loans. A larger loan would require a stronger guarantee.
The guarantees required
A young person without a job and therefore without a pay slip must be able to assure the credit institution, which provides a loan, its repayment capacity. Only in this way the loan will be granted without problems and difficulties. As alternative guarantees it is possible to propose mortgages or foreclosures on immovable or movable assets, such as: house, boat, money on current account, securities and so on. However, this last option is not so widespread especially among young people without work. Such a guarantee would cost more than the benefits you would get from applying for and obtaining a loan .
The most beaten path is that of personal guarantees, namely that of the surety bond . Very often the guarantor of a young person is his or her parent who will be responsible for reimbursing the credit provided by the bank in the event of insolvency on the part of the child.
The guarantor is the person who comes into play when the principal debtor has difficulty in repaying the capital that has been lent to him by a bank or a finance company. This is an important guarantee for the credit institution that provides the loan. The guarantor is considered, in fact, a “solid” party with the beneficiary of the capital.
In the event of insolvency
The bank can contact the guarantor to obtain a repayment of the loaned capital. In turn, the guarantor can claim against the principal debtor.
Among other forms of guarantee in the case of loans granted to young people without a pay slip and an income there are certainly insurance. The life insurance policy allows the credit institution to get the money back in the event of sudden death or permanent disability of the beneficiary of the loan. However, insurance policies are not intended as real guarantees but as clauses that are inserted when the loan agreement is stipulated.
The loans of honor
Loans without payroll for young people have recently been one of the most common types of financing when there is no work relationship. Among the most popular options there is undoubtedly that of honor loans , loans for university students , which are characterized by an important strength: the postponement of the capital repayment plan.
The amortization plan begins only at the end of the course of study or in any case in a period subsequent to that envisaged in the case of repayment of traditional loans.
The purpose of this form of financing is to reach out to young people so that they can obtain liquidity to complete their studies and repay the debt when they have found a job. Another type of loan suitable for young people without work and income is the one that requires the presence of a parent alongside the main debtor. There are several boys who may have needed credit even though they have no job. With the presence of a parent, as a guarantor, there will be no difficulty in obtaining a loan from the credit institution.