The growth of small loans without payroll reflects the economic difficulties of many citizens and traditional banking institutions. On the one hand, in fact, the last decade has seen an increase in the number of people who have to apply for funding without being able to present adequate guarantees. On the other hand, banks and other financial institutions have further tightened their own criteria by which they establish who is worthy of receiving credit, making the possibilities of many unemployed or casual workers even more complicated. For this reason many companies have been created that offer loans from the non-excessive entity (usually up to 5,000 euros) without requiring too heavy guarantees: many of these institutions operate online.
However, these institutions require some form of guarantee, although it is lower than those that the more consolidated banks expect. A bank, before granting a loan, will request a series of documents attesting to the personal and economic situation of the applicant, in order to assess the level of risk for the bank itself. The financial situation is assessed through the presentation of the latest pay slips, to show that you have a constant cash flow, and the tax return or the unique model / 730. If a person cannot present a recent paycheck, they will hardly have access to credit.
One of the first alternative possibilities is to mortgage a property. This could convince the financial institution to grant the loan, knowing that, in the event of insolvency (that is, if the debtor fails to repay the amount received), he could always retaliate against the property through the mortgage. Obviously, this guarantee is only possible if another mortgage does not already apply to that house, for example if you have used a mortgage to buy it. A similar solution, but of lesser magnitude, is to commit a valuable asset.
Another possibility is the presentation of a guarantor : in this case, the contract that establishes the loan is also signed by a second person, who undertakes to intervene with his own assets, if the first signatory is not in a position to repay the loan.
Finally, small loans without pay checks are often also designed directly for unemployed young people, who cannot present the conditions required for a normal loan. In their case, not only should funding be available, but facilities could also be provided, in the form of more advantageous rates.