Yes, it is possible to find a short term loan without a guarantor. At Money-Wise, we help you with precisely that. Let us start with what a non-guarantor loan is. 

What Is A Non-guarantor Loan?

 A non-guarantor loan is one in which there is no involvement of a third party between the lender and the borrower. Only the lender and the borrower are parties to the loan agreement. No other party is required on the borrower’s behalf to reassure the lender.

It would be best if you had a strong credit score to take out a loan without a guarantor. You might need collateral if your credit is less than ideal. Similar to your property paper, collateral is. If you don’t repay your loan on schedule, it aids lenders in recovering money.

Money-Wise Instant Personal provides a loan application alternative. A guarantor is not required. Applying for a short-term loan is possible. Money-Wise doesn’t require a guarantor.

Difference Between Loans With Guarantors And Those Without It

A third party must accept a guarantor loan, which is how they differ from non-guarantor loans. You receive a loan for a non-guarantor loan without a guarantor.

A loan guarantor is just as responsible for loan repayment as a borrower. A guarantor has a high CIBIL score and a solid loan repayment track record. Most of the time, your family and close friends are guarantors. The guarantor must be reliable to the lender and have a good credit rating.

When someone wants a loan for any purpose related to their finances but cannot obtain one because of their poor credit history or credit score, they have no credit score if they have never taken out a loan. Otherwise, a person would have a low credit score if they obtained a loan or credit card and failed to make timely EMI and credit card bill payments. Then neither conventional banks nor NBFCs offer loans without a guarantor. Bad credit makes it challenging to obtain an unsecured loan without a guarantor. You must have faith in the guarantor, who co-signs the loan agreement with you, to accept a loan, and the guarantor must have faith in you. Your guarantor will be required to pay back the loan balance if you cannot make your payments on time or if you default on the loan. 

You always approach a close friend or relative for a guarantor loan. Most of the time, family members and close friends with good credit are guarantors. However, in this instance, there is a chance that the relationship could be jeopardized. Sometimes your relationship will sour because of late payments and defaulting on the loan due to financial circumstances.

You didn’t need a third party, relative, or close friend to guarantee a non-guarantor loan. Non-guarantor loans are given based on your capacity to repay the debt. Without a guarantor, the lender is betting on your ability to repay