How can I get a loan without collateral
- Thread starter Crown001
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Deleted member 28127
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You have to check loan apps with precaution.
Mellorando
Banned
It is possible, there are business loans that can be availed without any collateral. Running a successful enterprise requires a lot of capital infusion. We seek loans and other forms of credit from banks from time to time to meet these financial needs. While most business loans require you to pledge considerable collateral or guarantee to get a loan, there are a number of finance options that give you credit without any collateral. Most of which are:
1. Line of Credit from Banks: The line of credits given by banks are based on your receivables. The credit is issued against your receivable invoices. They come with low-interest rates and serve as a good short term credit for business use. This credit line depends on your relationship with the bank and is solely discretionary.
2. Small Business Credit Cards: Most banks and NBFCs offer credit cards to small businesses. These credit cards can be used as a good backup for your expenses. You may need to have a good credit score to get these credit cards though.
3. Equipment Financing: If you are looking for loans to buy machinery or equipment for your business, then this loan is suitable for you. Here, the purchased machinery serves as the collateral until the loan is repaid and hence you don’t have to submit any collateral separately to get this loan.
1. Line of Credit from Banks: The line of credits given by banks are based on your receivables. The credit is issued against your receivable invoices. They come with low-interest rates and serve as a good short term credit for business use. This credit line depends on your relationship with the bank and is solely discretionary.
2. Small Business Credit Cards: Most banks and NBFCs offer credit cards to small businesses. These credit cards can be used as a good backup for your expenses. You may need to have a good credit score to get these credit cards though.
3. Equipment Financing: If you are looking for loans to buy machinery or equipment for your business, then this loan is suitable for you. Here, the purchased machinery serves as the collateral until the loan is repaid and hence you don’t have to submit any collateral separately to get this loan.
Caramelle
Active member
There are many different ways to obtain a loan that requires no collateral. However, they all work around the assumption that the borrower has the capacity to pay. This is often measured based on the source of income. Thus, an employed person will likely have more access to loans than an unemployed person. A person who has a thriving business will also have a better chance to obtain a non-collateral loan or a business credit line than someone whose business is failing.
If you are an employee, you may be able to tap salary loans provided by your own company or credit cooperative. These types of loans will usually carry between zero to low interest. Some government agencies also have low-interest salary loans features for their members. You can check out your government's trade-oriented agencies if they offer programs that support the type of small business you want to put up. This will usually require documents to support your proposed business. There are lending companies that offer loans for people who can prove that they are permanently residing in an address but those types of loans usually have very high interest. Some local credit cooperatives also offer loans to their members but they usually require membership and contributions.
If you are an employee, you may be able to tap salary loans provided by your own company or credit cooperative. These types of loans will usually carry between zero to low interest. Some government agencies also have low-interest salary loans features for their members. You can check out your government's trade-oriented agencies if they offer programs that support the type of small business you want to put up. This will usually require documents to support your proposed business. There are lending companies that offer loans for people who can prove that they are permanently residing in an address but those types of loans usually have very high interest. Some local credit cooperatives also offer loans to their members but they usually require membership and contributions.
sincerem
VIP Contributor
I really don't know about your country of residence, but here in my locality, it is very much possible to get a loan when it comes to loan without collateral. Your local bank should offer you some loan without collateral. I use mobile wallet apps to request for loan, and such works tremendously well for me when it comes to accessing quick loan. But I don't simply take loans when I don't have better reasons to utilize it, because I know how frustrating those loan companies can make it more frustrating to you. That's why I do everything at my reach whenever I takes loan from those wallet apps, to pay them back as at when due to avoid facing mockery.
Abigael
Valued Contributor
The best place to take a loan is the bank that you usually use. But those will require you to show proof that you are able to pay back the loan. Or you can have a collateral that is similar amount to what you are borrowing.
Another source of loan is the government. It usually gives grants to people in the country. But just like a bank, you need proof that you are good with finances. The good thing with government grants don't need collateral and the interest rates are pretty low.
You can also use loan lending sites and apps online. Those don't need collateral. But most of them also come with huge interest rates. You friends and family can also give you a loan without interest or need for collateral.
Another source of loan is the government. It usually gives grants to people in the country. But just like a bank, you need proof that you are good with finances. The good thing with government grants don't need collateral and the interest rates are pretty low.
You can also use loan lending sites and apps online. Those don't need collateral. But most of them also come with huge interest rates. You friends and family can also give you a loan without interest or need for collateral.
Kendy
Verified member
If you are in Nigeria, it is very possible to get loans without collateral and this is part of the major reason so many people have found themselves in bad debts. There are so many mobile apps online where you can get loans within few hours after application but it has demerits because all your details and ATM pin would be accessible to them. Loans without collateral can also be gotten from acquaintances but the money lenders suffer the effect because the borrowers would always find it hard and refuse to pay back on time because they know that there is no collateral involved. As it stands, I would never advise someone to give out loan without a worth equivalent to the amount you might be lending because so many people have taken advantage of others and even taken them to court over the money they are in debt.
Loans without collateral can also be accessed through grants and empowerment schemes from government and in some cases, you might likely not repay it back. It is best to always have some savings and then take half of the total capital you need through loan so that the pressure to repay would be reduced.
Loans without collateral can also be accessed through grants and empowerment schemes from government and in some cases, you might likely not repay it back. It is best to always have some savings and then take half of the total capital you need through loan so that the pressure to repay would be reduced.
