Features of a loan without collateral

No serious and disciplined person will want to take a loan (lainaa) with collateral without an intention of how to pay it back. But it happens that most times the borrower is unable to pass back due to one uncontrollable reason or the other. In such cases, the implication is that the individual undertakes a huge risk of bearing the loss of the invaluable item he gave as collateral. Hence, the safer option of always going for laina (loans) without collaterals.

Unsecured loans without collaterals usually come along with added risk for the lender since there is no guarantee or surety in form of an asset that the borrower will pay back. It is a case of sent loan immediately to the account (lainaa heti tilille) of the borrower without collateral. In this case, the personal belongings of the borrower that are of value are kept intact without any embargo placed on them which could have been the case if they had been used as collaterals.

It is not every individual that has collateral to make use of but with no collaterals involved, quick loan immediately (pikalaina heti) for the borrower can be arranged. In other words, people without collateral can still borrow money if they have a need to with no complications whatsoever. The burden often placed on borrowers by the lenders in form of unfair collaterals will not be an issue of discourse in this type of borrowing.

Also, there is no issue of involving other people to act as signatories in this type of borrowing money. For cases where collaterals are involved, friends or family members are usually taken as guarantors in which case they are liable once the borrower cannot pay. The money is sent as a credit immediately (luottoa heti) into the account of the borrower without all these complications once collaterals are not involved. This makes this type of borrowing money open to everyone without discrimination.