As experts in the sector, at Astro Finance we are aware that in recent years the demand for fast loans has skyrocketed. Something that is not surprising if we take into account the large number of advantages offered compared to loans from banks.
Of all these advantages today we want to focus especially on a very important one: the non-obligatory nature of contracting an amortization insurance.
What is the repayment insurance of a loan?
An insurance is a contract through which a risk is secured. That is, compensation is established that one of the parties will receive if the other contracting party does not comply with its obligations.
In the specific case of loan repayment insurance, this is a coverage that is very frequently applied in mortgage loans, although it is becoming more frequent to see it in other loans and credits.
When you have to return a certain amount of money in installments, the entity that has lent you that amount assumes the risk that something may happen to you that prevents you from fulfilling your obligation.
It is clear that among everything that can happen to you, the worst thing for you and the credit institution is that you die. If this case occurs, the obligation to return the amount could be extinguished if you have no heirs or they can not meet the payment, so that whoever lent you the money would remain uncollected.
Insurers have long been aware of this risk and have put a specific product on the market to cover it: amortization insurance.
It is, in fact, a subtype of life insurance that guarantees that in case of death the owner of the same, and in some cases even that is affected by great disability, will pay directly to the creditor all or at least a part of the amount owed.
You can not subscribe to an amortization insurance that covers all your loans jointly, but each loan must have its own insurance.
Is the amortization insurance mandatory?
Due to the frequent use of abusive clauses by banks in recent decades, the legislation is now betting on a more transparent system that gives greater freedom to the consumer.
Right now, no bank or credit institution can force you to take out an amortization insurance if you ask for a mortgage loan or a personal loan.
But whoever makes the law makes the trap. Although they can not officially require you to insure the risk of dying and leave the personal loan unpaid, in practice many entities do. They do not force you to contract expressly, but at the moment of truth most of the banking entities refuse to grant personal loans if the debtor does not agree to conclude a contract of amortization insurance.
It is true that this product is not negative, since it assures you that if something happens to you, the loan will be paid and your family will not have to face it. But you must not lose sight of the fact that paying for this insurance will mean an expense that you might not have foreseen at the time of borrowing money. This can cause you to end up paying more than you wanted to get money on loan.
Fast loans free of amortization insurance
The existence of this type of insurance makes it more difficult for many people to access financing through the traditional way, so they have to look for new alternatives.
In this scenario, the quick mini-loan consolidates as the best option. In this case, the consumer is never obliged to hire any type of insurance, which means that, for the interested party, accessing the financing that they need is simpler, faster and also cheaper.
Without insurance, you have more possibilities to access online microloans
Any of us can have a punctual need for money, but if we have already overcome the 67-year barrier, we may be in trouble to obtain financing.
If we go to a bank and it is necessary to take out an amortization insurance, it is almost certain that we will not obtain the desired money, since many insurers do not make life insurance of this type to people who are over 67 years old.
This implies that an older person, who will surely depend on his retirement pension or even a widow’s pension to live, will have very limited external financing options.
However, as this figure of insurance does not exist when it comes to fast online loans, we will not be discriminated against because of our age if we need financial help.
Forget the guarantees
Another typical figure when requesting money from a bank is the guarantee. That is, you need a third person to offer your assets or your payroll as insurance. This implies that if you as a loan holder do not return it, the payment will be required from your guarantor.
Now imagine that there is nobody in your environment that can guarantee you or that for personal or ethical reasons you do not want to involve anyone in your financial needs; what can you do?
It is clear that if the bank asks for an endorsement and you can not offer it, you will be in the same situation as the elderly person we talked about in the previous example since you will be discriminated against to access the financing.
And right here we find another advantage of the quick loan. To obtain it, they will not ask for an endorsement in any case.
The entity will decide whether or not to grant you the money you need based on your personal and patrimonial conditions, without requiring that another person come to put your assets as a payment insurance.
RAI, ASNEF and other files of defaulters, do they prevent me from accessing a quick loan?
If you are in the files of unpaid or delinquent is more than likely that you can not get financing, which can pose a serious problem for you and leave you in a situation of economic vulnerability.
As we have seen, companies specializing in quick loans have minimized the requirements for their clients to lend them money. This implies that they have made disappear many of the barriers traditionally found by consumers when they ask the bank for money.
Hence, the inscription in a file of defaulters is not a direct cause for not lending money. What these entities do is assess the client’s economic situation.
If you are enrolled in ASNEF or similar entities for a debt that is not important, you will have no problem when obtaining a microloan.
Fast loans vs. traditional loans: a world of contrasts
With what you have been able to read up to now you will have realized that there is a big difference between asking for money from a fast loans entity and asking for it from a bank. We are going to see these differences in a more schematic way to understand them better.
If you ask for a loan to a bank:
- You will have to submit a lot of documentation to prove your solvency.
- Possibly they will ask you to take out an amortization insurance and even present a guarantee.
- Signing the loan contract before a notary will suppose an extra expense that you will have to assume.
- If your name appears in some file of defaulters you will have more difficulties when it comes to obtaining the money you need.
- In case you have exceeded 67 years you will have it especially difficult for a bank to lend you money.
- It is a process with a lot of bureaucracy, so it can take weeks to access the money you need.
If you ask the money to a microloan entity:
- The documentation to present is minimal. Normally it is worth with the DNI and some document that justifies that you have income (it can be a salary, a pension, an unemployment benefit, etc.).
- You will not have to contract depreciation insurance or present guarantees of any kind.
- The contracting is made directly between the lender and the borrower, that is, you do not have to go to the notary, which saves expenses and time.
- Normally no maximum age limits are set for clients. But there is always a minimum limit that is to be 18 years old.
- The entire hiring process is done online , so you get an answer in a few minutes and you receive the money in a period that, at most, will be 48 hours. You can apply for quick loans online from anywhere in the world and at any time.
The conclusion we draw from all this is that, if you need a quantity of money that is not too high, the easiest and fastest way to obtain it is to go to entities specialized in quick loans. You will save money by not having to buy insurance or additional products and at the same time, since you can access financing more quickly.