What Guarantees are required for a Loan?
July 27th, 2010
The personal loan is a type of financing is granted by banks or finance companies to those who request it. The loan will be repaid according to a precise plan of redemption, together with the institution decided to grant funding. The personal loan is a type of loan is not finalized. This means that when you request does not need to specify the reasons and purpose of the loan requested.
The money is then given by the bank or finance company directly to the person making the request. Usually the amount of personal loan does not exceed 30,000 Euros. To request a personal loan must meet certain conditions set by law:
* you must be usually aged between 18 and 72 years. The closing of the financing contract must therefore be up to the age of 72 years of age. In any case the maximum age may vary from one company to an ‘other;
* you must be a self-employed, a retiree or an employee;
* the minimum length of service shall be employed for 24 months and 6 months for employees;
* the maximum duration that the applicant must pay the loan will pay at most 35% of salary.
What guarantees are required for a loan?
Usually the grant of a personal loan requires no collateral, such as the pledges or mortgages. In any case, the banks in order to minimize the risk of default on the loan, may grant a loan that provides installments or a special guarantee. Another form of guarantee is the guarantee, or when a third person becomes multiple liability and loan guarantees for the beneficiary. If it does not pay the loan, the bank or finance company may refer to the guarantor.
Categories: Loan
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