Close – up loan.

You may have noticed that there are very different types of loans. You can find the right one for every situation: mortgage, leasing, internet loan. Depending on the type of loan you choose, your credit terms and application will change. For example, unsecured credit is usually available online, but a bank loan almost always requires both a collateral and a guarantor. If you want to know why a collateral loan is mostly only available online, read on!

What is a pledge and why is it needed?

Risk mitigation plays an important role in the consumer lending industry. To determine whether a potential borrower will cover the debt within the stipulated term, the lender assesses his solvency and credit history. However, many lenders require another pledge or surety – an additional loan repayment guarantee. In contrast, fast loans without collateral are granted only on the basis of the borrower’s solvency.

A pledge and a pledge have the same purpose, but are different:

  • pledge is the property of the borrower that is pledged until the loan is repaid. If the borrower is unable to repay the loan and defaults, the pledge is forfeited to the creditor;
  • a guarantee is a written promise by a third party to cover the debt, in whole or in part, if the borrower is unable to repay the loan himself. Depending on the type of credit, both natural and legal persons can act as guarantors.

The following usually becomes the pledge of retail lending:

  • Real Estate;
  • vehicle.

To understand the terms of the pledge, you need to go into the details of the loan. Where can I find all the information on pledge terms? Credit agreement!

Details to look out for in your credit agreement

Whether the lender requires a pledge, a guarantee or both is stated in the credit agreement. The conditions of the pledge or guarantee are explained there. Typically, the lender offers one of the following options:

  • the pledged property remains at the disposal of the borrower;
  • the pledged property is forfeited to maturity.

What exactly the lender will choose depends on the type of pledge and the situation of the borrower. If the only property is pledged, the customer can usually continue to use it. Occasionally, especially if the object of the pledge is a car, the lender issues a power of attorney allowing the borrower to drive the pledged car.

The pledge and guarantee apply to loans that are applied for and executed in person rather than online. Read on to find out when a mortgage loan is the optimal option!

Pledge or surety as an integral part of large loans

Lender requirements depend on the type and amount of the loan. If the borrower needs a large sum, the application process will be relatively long.

This can take several business days, and in the meantime, the lender becomes familiar with the client’s:

  • solvency. This is evidenced by the following documents: a statement from the workplace, a bank statement;
  • credit history. It shall be verified by means of electronic public and private debt history databases;
  • eligibility of guarantors. The information provided by the guarantor is also verified by analysis of databases and documents.

It also takes time to process a pledge or a three-party contract. But nowadays, consumer lending has become more diverse and unsecured lending has emerged. Lighter credit is usually available from non-bank lenders, including Ricky and Dova Diver. Find out why cash collateral is a non-bank lenders service!

Loans without pledge are specially designed for household expenses

Compared to other types of loans, internet credit is granted in less than half an hour. For example, a Ricky and Dova Diver unsecured loan will be in your bank account approximately 15 minutes after the application is processed. How do non-bank lenders provide this speed?

There are 3 explanations for this:

  1. online application;
  2. no documents required;
  3. it is a collateralized loan.

If you need more money today and the amount you need is relatively small, unsecured internet lending is a handy solution. Finally, let’s look at the terms and conditions under which such a credit can be obtained.

Why do non-bank lenders lend money without collateral?

Quick loans are for different purposes. You can borrow money online to pay for an urgent bill or to buy essentials, and the amount you ask for is never the same as a home or car loan. This allows lenders to make simpler, but no less important, claims on their clients.

You can borrow collateral at Ricky and Dova Diver if you are:

  • Latvian citizen or permanent resident;
  • between the ages of 20 and 75;
  • with a positive credit history.

Note that a mortgage loan is a short-term service that must be used wisely. By entering into the agreement, you are responsible for meeting your credit obligations. Despite the relatively simplistic way of obtaining money, fast loans are a serious type of loan.

Ricky and Dova Diver reminds that only those who have adequate solvency and regular income can apply for a loan. Don’t hurry to apply for a credit! First, think carefully about whether you really need the credit and can pay off your debt on time!