Many times it is necessary to finance the acquisition of goods or necessities such as the car, the motorcycle, the expenses of the dentist, a special trip, etc … or to face unexpected expenses in unforeseen situations. For this we use small loans in which the bank or the intermediaries ask the loan applicant for certain requirements for their concession: having a payroll, permanent employment, etc. and also people who commit themselves as guarantors; This is called personal guarantees and can be presented by the same person who requests the loan. These personal loans have interest rates that oscillate around 9% currently, always depending on the characteristics of the loan and the guarantee presented.
But sometimes we find ourselves in certain circumstances in which it is not possible for us to present guarantees. That is why some entities offer loans without endorsement. Loans without collateral are usually loans of small amounts, from 600 to 6,000 euros, although they can reach 60,000. This type of financing without endorsement is offered by all types of financial entities, from traditional banking to companies that advertise daily in the press and on TV as well as other small intermediary companies located throughout Spain. The only thing we have to present is the DNI and the last payroll.
These loans, when granted without collateral, have a very high interest rate, which can reach 25% APR . This is because of the high risks involved for the entity, which supports very high rates of delinquency and default. Despite these high interest rates, loans without endorsement continue to be attractive, because for many people they are the only possibility of obtaining the credit they need and because, in addition, they offer a very fast processing; in 24 or 48 hours a response can already be obtained from the entity and if the loan has been granted, the amount will be entered into the account. The clients of the loans without endorsement are usually people of 30 and 55 years, with monthly income of between 700 and 1,500 euros.
Due to the special conditions of this type of loans it is convenient to examine carefully the contracts that we sign to avoid surprises or complicated situations of non-payment in the future.