Of course, a loan can be taken out without unemployment insurance. Most loan providers leave their borrowers free to choose whether or not to insure the loan. The contribution summarizes the advantages and disadvantages of the possibility to insure loans against unemployment.
Loan without unemployment insurance – how much security is required?
A loan without unemployment insurance is a loan for which no residual debt insurance (RSV) is to be taken out. Comprehensive insurance protection through the RSV has advantages for the borrower and the lender. The usual insurance cover includes the death of the debtor, the payment of an installment in the event of illness and unemployment. The borrower primarily protects himself and his family against unforeseeable life risks. For the lender, there are two benefits from signing an RSV. His credit risk is getting lower. The borrower has insured the most common reasons why repayment problems can arise.
The second advantage is the additional income. At the conclusion of the RSV, the lender acts as an intermediary. He receives a commission for this mediation service. The RSV has no disadvantages for the credit provider. The borrower bears the disadvantage of high costs. In his view, it is therefore a question of money whether he takes out a loan without unemployment insurance or not.
Avoid high costs for the RSV
Nobody is forced to take out insurance cover together with the loan agreement. Up to 10 percent of the loan amount is not an unusual insurance premium when you take out an RSV. The risk is low, especially with small loan amounts and short terms. The money for the RSV can therefore be saved.
The fear of not finding a loan offer without an RSV is unfounded. All credit institutions listed in the credit comparison only offer residual debt insurance as an option. A simple cross in the right place in the online loan application precludes the insurance request. Favorable interest rates are of course still possible without an RSV.
Examples of credit without insurance coverage
Anyone who is afraid of an interest premium without RSV can make provision with interest offers that are independent of creditworthiness. In the case of credit offers that are independent of creditworthiness, the fixed interest rate applies equally to all borrowers. Without RSV, large amounts of credit that are financed over a long period of time should not be concluded without hesitation. But with a small loan, the risk is manageable. An affordable fixed-rate offer, even without an RSV, comes from Santander Bank, for example.
Santander offers loan amounts between USD 1,000 and USD 50,000 net loan amount. You can choose between 12 months and 84 months for the terms. Credit insurance is offered as an option, but is not mandatory. A net loan between USD 1,000 and USD 3,000 could be financed at particularly low interest rates. With a view to the lowest possible interest rate, a term of up to 36 months is optimally chosen.
The annual interest rate for this loan offer, which is independent of creditworthiness, is only 2.89 percent. Until September 30, 2013, the loan would be even cheaper without unemployment insurance. If you apply for 3,000 USDos together with a term of 36 months, the special offer offers an effective fixed interest rate of 2.78 percent.