Access to credit is not always easy for everyone. When there are no pay slips to protect the capital granted to us by the credit institution, it is necessary to know how to prove that we are able to repay what has been given to us on loan. Here then is that in the absence of a permanent employment contract other forms of guarantees are required . First and foremost, banking institutions and financial companies are given the increase in the number of unemployed and especially of workers with atypical contracts. Hence the decision to reach out especially to young people , ensuring even this most complex audience the possibility of obtaining extra liquidity. In this guide we will discover together how it is possible.
One of the main credit solutions is that of loans without a pay slip with guarantor that have now become the most popular remedy when young people are not able to provide additional guarantees for the absence of a fixed income. This type of financing represents the right way to obtain an amount of money when you do not have a pension or in any case an income deriving from employment.
Each credit institution must be able to be sure that the recipient of the funding is able to pay back the capital that has been lent for a period of time. This is why both the banks and the financial institutions require the pay slip for employees, the freelance staff and the pension slip for pensioners at the time of signing the loan agreement. Therefore, a document is needed that can testify to a fixed customer entry; an income that can ensure repayment .
But what happens when these requirements are missing? How do you do when a young person needs a loan but does not have a fixed income ? Surrendering is not the right answer at all. The solution is to find alternative guarantees.
One of the alternative guarantees that can be offered to a bank to obtain a loan is that of renting a property as income.
In this circumstance, therefore, it will be necessary to go to a banking institution and show the rental contract as well as an account statement that is able to ascertain the payment of the rent by the tenant.
That the thick of a real estate property is however not the only alternative collateral that can be offered to a bank in exchange for a loan. There is also the financial income: we can use an invested capital that produces a certain annual return but we do not intend to move as a guarantee to have access to a loan. There is no lack of more specific situations such as that of women without a job who could use the maintenance allowance of the former spouse as an alternative guarantee for obtaining liquidity.
However, our advice is always to interface with a financial advisor who will surely be able to tell us which way to go, as well as which credit institution can make our request. Each bank or financial institution indeed has a different internal policy regarding the granting of loans to customers.
Who is the guarantor
When the alternative guarantees we have listed in the previous paragraph are missing, the only remedy for obtaining a loan in the absence of a fixed and certain income is that of a guarantor.
The guarantor is a third party, ie a person who is on the side of the principal debtor of a loan, entering into the game and acting in his place in the event of insolvency on the part of the beneficiary of the capital.
The guarantor must prove that he has financial soundness so as to be able to intervene to replace the debtor if the latter were unable to pay one or more installments. The figure of the guarantor, as well as in the case of loans to young people, represents a fundamental solution also for protesters and bad payers who intend to access credit to obtain greater liquidity.
The guarantor has two important characteristics: extraordinary and accessory.
What are its functions
Let’s see together what is meant by the nature of the extraordinary and the accessories of the guarantor. In the first case we refer to a person who performs an occasional and very rare function. Let us imagine that a young person requests and obtains a loan repayable in 36 monthly installments but that for personal reasons is no longer able to repay the capital obtained after the ninth installment. In this case the guarantor comes into play and reimburses the missed installment , while the debtor, that is the beneficiary of the loan, will solve his problems and will return to pay without problems.
The guarantor, in addition to intervening in an extraordinary way, also carries out an accessory function . What does it mean? The bank or the financial company may also refuse to grant a loan to a client, an unemployed person or a person working illegally, even in the presence of a guarantor who has a demonstrable income from work or a pension. As previously stated, in fact, every credit institution has its own internal policy and sets precise conditions for granting or not financing. The guarantor is an accessory figure because his intervention is in any case extreme. Being able to get a loan without a pay slip is possible but you need to turn to financial advisors to direct us towards this type of financing. It may happen that it is not always approved.