Many people stand with their backs to the wall. You are struggling with your fate and you have mostly got into these problems through no fault of your own. Illness, accident or unemployment are usually the cause of this dilemma. There are hardly any ways out of this personal crisis, it runs through all circumstances and mostly affects the soul. In addition to personal and private problems, there are usually also financial concerns, especially if, for example, no occupational disability insurance has been taken out in advance.
Everyday things, be it food or other major purchases, can hardly be afforded. One speaks here of particularly difficult cases in the social environment. But at least for the financial situation there is usually a remedy, namely a loan in difficult cases. This article explains how these loans work and are structured.
A loan in difficult cases – these are the conditions
Most banks and credit institutions offer support to people who have come into this dilemma through no fault of their own. Of course, there are also tests here that evaluate the creditworthiness of the borrower beforehand. Classical premises, such as proof of income, which is supposed to show the regular income, are usually not available here. Possessions in relation to shares and real estate are also potential collateral, but mostly they do not exist either. So the collateral is often not really available. But there are also other options, for example with the help of a guarantor or a personal loan.
In this case, the guarantor steps in in the event of defaults and can pay the borrower’s installments. For example, a surety can be a friend or acquaintance. A personal loan is also possible, here private individuals also step in the lenders. Another requirement for a loan in difficult cases is that no entry in the nationwide uniform credit database is allowed. That makes approval of a loan almost impossible. The conditions for such a loan are set out below.
Framework for a loan in difficult cases
If the collateral is secured in principle, there is a maximum possible loan amount of up to 100,000 dollars, if not there are still small loans of up to 5,000 dollars. The term of the loan, ie the duration of the monthly installment, is between 6 and 60 months, depending on your preference. The interest rate is an important criterion for the composition of the installments, which is between 4 and 14 percent depending on the bank and the market situation. In principle, it makes a lot of sense for people who are experiencing financial problems to think about such a loan, but you should still make sure that you can also ensure that the installment is repaid.