If you’re interested in getting a loan, the term ‘home credit loan’ may have popped up here and there. For those who are unfamiliar with it, a home credit loan is also known as a doorstep loan, and it is a loan that you get from the comfort of your own home.
To put it simply, it’s a convenient loan you get at home, but of course, there is more to the process, and that is what this article is going to address. Should you get home credit loans? Read our page on the questions you need to ask yourself before deciding that. But for now, here is some more information about them.
What Are The Basics Of A Home Credit Loan?
A home credit cash loan is an unsecured loan, meaning that you do not need to provide any assets as collateral. That means that you don’t provide any security as a borrower (in case, say, you cannot afford repayment and you default on your loan). Because of that, the interest rate on your loan will be higher.
The good news is that you can repay in instalments over a longer period of time, so you don’t have to worry about producing the entire amount to give back overnight, with added interest. The amount you take, the amount you repay, and over how long are all things you establish with the home credit loan agent when they come at your house to arrange the transaction.
How Do You Apply To A Home Credit Loan?
Applying for a loan is easy for a number of reasons:
You apply online or over the phone
There is minimal paperwork involved
You don’t have to leave the house
The home credit loan agent does all the work for you
So the way it works is you fill out an application online, or, if you prefer, you can call and leave your details with an operator. That is basically the effort you need to make. After that, it’s all up to the agent. They will call you to set up an appointment at your convenience and then will come to your house to discuss your situation and offer you some options.
You are free to review these options at leisure and call them back to let them know what you’ve decided. The agent will come back so you can sign the necessary documents, and will then come around to drop off the money. That is the extent of the application process, from start to finish.
How Do You Repay A Home Credit Loan?
- When it comes to repaying a cash loan at your doorstep, it's just as easy. The agent comes to your house once a month to collect the instalment. You don't need to go anywhere or make any transfers. In fact, you don't even need to have a bank account. You get the loan in cash, and you give it back in cash.
How Much Can You Borrow On A Home Credit Loan?
- Because of the fact that you don’t present security, a loan will not come in very large amounts – only between £100 and £500 at most companies, with a maximum limit of £1000, occasionally. That’s enough to cover an emergency expense, like a car repair or something like that, but clearly, it’s not enough for a large purchase.
Who Can Get A Home Credit Loan?
The requirements for a loan are not stringent at all, so technically, anyone can get a loan! But of course, certain people will benefit from a loan like this more than others. If you have assets you can use as collateral to get a secured loan, you might be better off choosing that option or getting a different type of unsecured loan using a good credit history.
As for who is most likely to get a loan like this, that would be people who are unemployed, people who have bad credit, single mothers, or people with limited mobility. The convenience is a major help for certain categories of citizens, and home credit loans with bad credit or home credit loans for unemployed citizens can be just the thing you were looking for.
In conclusion, a home credit loan is similar to other unsecured loans, but with some important differences. The biggest one is that it is extremely convenient, as it comes to you, instead of requiring you to pursue it.
In addition, it offers options for categories of individuals who normally have a hard time getting accepted for a loan, such as unemployed people, people with bad credit, or people who don’t have freedom of mobility to run around financial institutions applying for loans and signing paperwork. If you’re interested in getting a loan, check out the benefits and drawbacks of a home credit loan before you make up your mind.
|What Is A Home Credit Loan?
|What it is
|Home credit loans are unsecured loans that you receive at home. Because they are unsecured, you pay higher interest. However, you can pay in instalments over a longer period of time.
|How you get it
Getting a loan like this is easy – apply online or over the phone. You just need to give the company your information and they'll visit you to help you with the process.
They give you some options, you pick the one you want, and then they come back and hand you the money.
When it’s time to repay, they come back to collect the money at your doorstep, no effort required.
|How much you get
|Loans aren’t massive, because they are unsecured. You can get between £100 and £500, or sometimes even up to £1000, depending on the company.
|Who can get it
|Anyone can get a loan, but they are generally mostly used by people who are unemployed, have poor credit history, or have limited mobility and thus, have difficulty securing a different kind of loan.