The unsecured loan is a form of loan tested and recognized in civil law and Italian contracts; although not very popular is a convenient formula that regulates some transactions otherwise difficult to manage. The term derives from the Greek chiros (hand) and graphos (writing), literally indicates a contract signed by hand, the quick verbalization of a passage of money and the counterpart requested, simply with a signed sheet .
In reality, the practice is a bit different, even if free from red tape and various documents , it is by no means a good-natured or bond-free loan. The signature is the same as for all contracts the seal of guarantee, which suggests the entire text read, signed and approved. In the case of unsecured loans, no mortgage is required to protect the loan , therefore no pledged property; it is a form of loan which is particularly advantageous for the creditor and is only granted if it is not possible to proceed with the mortgage.
Everything easier but within certain limits
This formula is used for relatively low figures, generally not higher than € 75,000 in the case of a physical entity, € 120,000 for companies and for a repayment period ranging from 2 to 10 years. Obviously the amount to be committed is proportionate to the strength of the contractor, the weaker the debtor, the smaller the amount of the transaction. As with all higher-risk financial transactions, there is a higher return; The interest rates related to this form of loan are very expensive, currently they can reach a 12% APR.
The cases in which this type of loan is used are generally payments related to restructuring operations or common systems such as a condominium , where for each quota it would be too complicated to instruct different practices for each individual tenant and the relative amounts would not justify the activation of a mortgage. The credit can still be protected with other forms of guarantee such as:
- promissory notes;
- pledges on direct securities or any guarantors.
Diversification in the reimbursement of the prize
The unsecured loan is a common form of transaction in which the bank provides a sum to the customer, who undertakes to repay it through periodic installments including interest and principal, according to a fixed, variable or mixed rate linked to the performance of the Euribor . In addition to this classic form there are two other possibilities for compensation:
- the unsecured loan with a heavy maxi installment, which provides for a first installment that is more substantial than the rest of the others and with which most of the capital is extinguished;
- the unsecured amortization loan, which assumes the repayment of the premium starting from a deferred date (generally 6 months later) with respect to the payment of the capital.
- An unsecured loan may be granted by several lenders to a single beneficiary who undertakes to return the amount paid to the parties.
Among these are indicated some creditors to give priority if there are difficulties in awarding the award. In the event of insolvency, the preferred creditors will be the only ones to benefit from the repayment, even if partial.