Much like payday loans, a micro loan or “mini loan” is for a small sum of money for a short period of time. Also known as “emergency loans”, they will also come with relatively higher interest rates.
In this case your pension acts as an asset much like a house or car. The loan is taken out according to the value of your pension. The downside is that this often involves a long-term payment plan against many more of your pension payments to come. Some companies require that the borrower must buy a life insurance policy that names the company as the beneficiary.
Some creditors will accept a co-signer with good credit to serve as a guarantor for a person who has a low credit score. The co-signer is essentially agreeing to reimburse the amount owed if the loan applicant fails to pay their debt.
A credit union is a financial cooperative that is run by its own members. There are different types of credit unions to suit a borrower’s needs, whether it be corporate or personal. The public tend to trust credit unions more than they trust the banks, and in many instances, interest rates aren’t as high.
Similar to the home equity loan, you can use your car to secure your loan and use the vehicle title as collateral. The amount you can borrow will depend on your equity in the car, as well as the market value of the property.