Friday, 8 November 2013

Can I Get a Loan Without a Collateral?

Many individuals thought that if they don’t have a collateral to offer the bank or any other lending company, they won’t be able to avail of a loan. This is however, a misconception. While there may be financing institutions that will not grant you a loan if you don’t have any form of security to offer them, there are other lending companies that can provide you with the funds that you need even without any collateral.

Yes, these are lenders that offer unsecured loans NZ. This means that you will be able to avail of a loan even if you don’t provide the lender with any form of security.

If you would be going for this option, you must take note that the lender would also consider the loan as a high risk one. Less risk for you since you won’t be turning over any property under your name as security, but it will surely be a high risk one for them, since they would only be relying on your word and signature that you will indeed repay the loan.

Since this is a high risk loan, the lender will charge you with a fixed higher interest rate. So whether market rates fall, your interest rate remains all throughout the loan term. This is quite justifiable considering that it is an unsecured type of loan.

So if you don’t have any collateral to offer, you can always opt for unsecured loans. Just choose the right lender and you will surely do fine.

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