Collateral free Loans: will you take it?

[Razor1911]

Firstly, What is a collateral free loan? When you take a loan or any financial institutions, you need to provide a security property, it may be money or land or any property which has some value. This security asset is called collateral. Without collateral, you can't take any loan from the banks.

But due to the pandemic, the revenue of the banks are in a dire situation. There is a liquidty crunch in the economy. Thus the govts of many countries are providing collateral free loans. Means you don't have to give security in order to take loans. Surely that will help to recoup the economy to normalcy.

But as an individual, will you prefer to take such loans? As such loans are for limited period only, you can't claim such offer later again.

 

[Good-Guy]

I have never liked taking loans no matter in whatever shape they are. In my countries, some banks do offer interest-free loans. However, the problem is that how would you pay back the loan if you suffer from loss? This is why I would rather start a small business but never take loans.

 

[Razor1911]

I have never liked taking loans no matter in whatever shape they are. In my countries, some banks do offer interest-free loans. However, the problem is that how would you pay back the loan if you suffer from loss? This is why I would rather start a small business but never take loans.

Some point of time, It become compulsion for people to take loan. Some people may take loan for investing in other fields, some may take to meet medical expenses etc. But If you are taking it for investment then it is not a bad idea. As most of the large companies deal with huge anount of loans. Only Such loans gives the businesses the liquidity they need to function in the market effortlessly.

 

[Alexandoy]

A collateral free loan is given only to the deserving loan applicants. The catch is the co-maker or the guarantor which means you can take a bank loan with no collateral but someone should provide support in case you cannot pay back the loan. By the way, you also need to have proof of your capacity to pay. That means a jobless person cannot be granted a loan.

 

[Abigael]

It is so rare to come across such collateral free loans. I guess they will have to use your credit history to determine whether you deserve the loan or not. I would take it but personally, I try to avoid loans as much as possible no matter how easy they are to get. I prefer working for my own money and using just that carefully.

 

[Riya Shah]

I feel collateral-free loans are much better as you don’t have to mortgage any kind of property to avail this type of loan… You will find many good companies like LendingKart that offer easy business loans to expand your business or buy new machinery. The process is online and they ask for minimal documents..

 

[funmi]

Collateral free loans are the best type of loan to be collected by business owners. It is very good because it is better than what banks require from their customers. If I see any opportunity of those companies that will give loans without collateral, I will surely take it.

 

[Cinderella]

When I open another loan window, it only means additional deduction to my current low net pay. So, I won't accept any loan offers at current time. My goal is to pay off my loans so that I can have higher net pay.