Is collateral security essential for personl loan?

Answer 1

Fast answer.... yes. The days are long gone when a person could borrow money from the bank on a handshake, because a person's word was his bond. Nowadays if the amount is significant, they are going to w ant collateral. Just ask yourself whether YOU would loan a couple of thousand or more to a total stranger, just on his word that he would pay you back. You can make him sign a hundred promisory notes and it won't mean a thing if he disappears

Answer 2

2

Answer 3

True the amount borrowed enters into this.

My bank allows unsecured loans up to $10,000.

Finance companies has the luxury of using personal property (certain household items) as collateral on their loans. As well as autos, motorcycles, ATVs, etc.

I agree too that credit unions are an excellent source for note loans.

Answer 4

It all depends on quantum of loan you avail. Obtaining collateral security differs from bank to bank. Some banks will insist apart from salary certificate, an undertaking from the employer.I think, there is no hard and fast rule in this respect.

Answer 5

If your credit is good enough, you can go get what is called a 'signature' loan at your bank, probably up to $3000. It helps to have a relationship with your local bank to get this. If your credit is questionable, you definately need collateral or a good cosigner.

Answer 6

It depends on where you go. There are a lot of places that will give you a loan without any collateral, if you have decent credit. CitiFinancial is actually one of the leaders in it.

Answer 7

Depends on the bank or credit union and your credit history. Credit Unions are usually a little more willing to work with their members on loans such as this.

Answer 8

Not necessary, but it is cheaper.

Answer 9

Yes, it is .