An instant loan without a guarantor is only possible if the borrower himself has a sufficiently high creditworthiness for the desired loan. In the course of a loan application, the bank therefore checks the borrower’s creditworthiness, for example by providing evidence of the income situation and checking the Credit Bureau.
Fixed credit line
The bank must also provide information on fixed cost centers (rent, insurance) so that the bank can then determine whether the borrower can also afford the installments. Only if the credit institution can determine this fact beyond any doubt will a creditworthiness be issued, which is measured on the basis of a fixed credit line. The credit line indicates the amount of a possible loan, at which the installments do not exceed the financial possibilities of the borrower.
As long as the borrower has the necessary creditworthiness, he can therefore take out a loan within his fixed credit line. No guarantor is necessary for this. If the loan is taken out as an instant loan, applicants can be sure that it will be processed as quickly as possible, including a quick transfer, in order to receive the money in liquid form as quickly as possible.
This means that bills can be paid quickly and other loans can be repaid immediately. Most direct banks on the net provide their loans as instant loans if the applicant also submits all the required documents as requested by the bank.
When does a guarantee become necessary?
A loan can always be guaranteed if the borrower wishes to take out a loan that is not within his credit limit. An instant loan without a guarantor is also no longer possible if the borrower has no credit rating. Creditworthiness is denied to those affected by banks if there is no regular income or only a very small amount of income.
In this case, banks simply do not see any financial scope that could bear the burden of paying off the installments. If the loan is issued, borrowers would then find themselves in a situation where there is a risk of over-indebtedness and, in the worst case, even personal bankruptcy would result.
The instant loan without guarantor is therefore directly linked to the financial situation of the borrower and can therefore only be issued if it is considered sufficient for the loan. If the person concerned is not creditworthy, for example due to a very low income or because of a negative Credit Bureau entry, a loan can no longer be paid out, unless a guarantor is used for this. This person is then liable for the debtor’s debt over the entire term of the loan.