There is a notable tendency to take some shortcuts when it comes to financing. The reason is simple, banks have their requirements and sometimes potential customers cannot complete the requirements for one reason or another. It is in these scenarios that the so-called pledge loans appear .
Banks use this concept when they offer loans for vehicles
Putting the newly acquired unit as collateral and improving the conditions for contracting the loan. However, pledge loans are managed by companies in the best style of pawn shops. What does this mean? That the applicant for the money has to deliver a good whose value is higher than the loan granted and it is determined that the amount financed would be between 40% and 70% of its real value.
The object delivered is really the guarantee that supports the requested credit. In the case of having problems to make the return of the required amount, plus its interests, the risk becomes so great that you can lose that pledge without any considerations. Of course, if the amount of the object obtained exceeds the debt, the lender proceeds to return the remaining money to the debtor after paying all the expenses incurred.
The difference between pledge loans and microcredits
As mentioned above, the pledge loans differ from others in which it is not necessary to give a good in return. On the other hand, requesting a microcredit represents a clear advantage because of its accessibility and speed at the time of the evaluation and its delivery. The requirements vary depending on each entity.
It is important to consider that on the road you find yourself with an obstacle such as appearing in the lists of delinquents in which no one wishes to be. An example of this is to be in the “Veraz” database whose purpose is to offer valuable information of people who have unpaid debts with banks or other companies. We invite you to read our post on how to leave Veraz.
When evaluating access to a microcredit you should know what your ability to pay and be ordered to pay the microcredit fees on time. Be realistic with what your income is and only use a microcredit in an exceptional way so as not to carry obligations that are impossible to fulfill in the future.
In case you are in this situation, needing to access the money you need to cover the expenses you have in mind, Lu Rancho can offer you the help you need. Lu Rancho microcredits are easily accessible that adapt to your needs. Be sure to find out the different microcredit offers that Lu Rancho has for you!