What is the unsecured loan, and what are its main characteristics that differentiate it from the mortgage loan.
The unsecured loan is a loan from a creditor institution (a bank or a financial institution) and is characterized by the absence of guarantees of a real nature (pledge or mortgage). In other words, and without prejudice to due simplifications, it is a loan in which only the applicant’s signature is required as a substantial “guarantee” of solvency.
Having established the above, the unsecured loan is similar to any personal loan, to a salary or retirement salary, or to an honor loan: technical forms that, without prejudice to infrequent exceptions, are without guarantees of real nature.
Also included in the unsecured loans is the loan changed (in this case the main guarantee is represented by the existence of an immediately enforceable credit) and finalized loans (those intended for the purchase of small assets, and they are usually brokered directly by the dealer who sells the asset being financed).
On the basis of the foregoing, we can therefore summarize again the concept that in the unsecured loan the only guarantee required by the bank is the “signature” of the applicant or guarantor, which in turn will provide the credit institution with sufficient solvency reassurances the presentation – during the preliminary investigation – of documentation that can show your income.
Being able to lend to the bank less guarantees than the mortgage loan , the unsecured loan is generally granted by the bank for amounts less than the mortgage loan. This does not mean, however, that the amount obtainable is of small entity: although the limit is generally equal to 20 or 30 thousand euros (depending on the preferences of the bank), there are certainly not a few loans available on the banking system Italian, with request limits of 50 or 100 thousand euros.
The unsecured loan is returned within an extended amortization schedule normally within 72 months. However, there are also unsecured loans on the market with repayment terms of up to 10 years . In any case, the duration limits of unsecured loans can hardly be compared to those of mortgages.
The unsecured loan can be disbursed at a fixed or variable interest rate, depending on customer preferences. However, it should be remembered that in some cases (think of the loans for the purpose or the assignments of the fifth salary or pension), the only available technical form is the fixed-rate one.
In summary, unsecured loans are loans of a personal nature provided under the sole “signature” of the applicant and guarantor. There are no guarantees of a real nature such as pledges and mortgages. Generally granted at a fixed rate, for amounts not exceeding € 30 thousand, and for a maximum duration of 5-6 years, they are the most common and common form of bank loans.