LOAN FROM OVERSEAS WITHOUT COLLATERAL WITHOUT SECURITY
A loan from abroad without collateral is defined as a specific loan facility granted through a bank or a financial lender with doesn’t require any guarantee in order to secure the financing.
A loan from overseas without collateral has the objective for any lender to take a clean risk when providing for funds to a borrower who cannot afford to present any financial guarantee.
An unsecured loan from overseas is a loan offered to a borrower who will not have to provide any financial guarantee or collateral to secure the loan and mitigates the risks towards the foreign lender.
A loan from abroad without collateral is rare, because the lending institutions will always require financial security in the form of a financial guarantee either in the form of a solvent person providing a guarantee to repay the financing in the event of default of repayment of the loan or assets of the borrower.
Unsecured financing from abroad is feasible in specific cases when it comes to assisting through foreign lenders the creation of a business via microfinance.