Unsecured loan
An unsecured loan does not require collateral such as property, a car, or another asset. Monefit does not require collateral. Approval depends on your financial situation, repayment ability, and creditworthiness assessment.
Amount used
Unsecured loan up to €15,000
An unsecured loan can be useful when you need financial flexibility but do not want to pledge property, a car, or other assets as collateral. With Monefit, you can apply for a flexible credit line of up to €15,000 without collateral.
Monefit works as a reusable credit line. If approved, you receive access to a personal credit limit, withdraw only the amount you need, and repay according to the applicable terms.
Apply online and manage your credit line digitally.
What is an unsecured loan?
An unsecured loan is a credit product that does not require collateral. This means you do not need to secure the credit with property, a vehicle, savings, or another asset.
Instead, the lender assesses your application based on your financial situation, income, existing obligations, repayment ability, and other relevant creditworthiness factors.
Unsecured loans are often used for personal expenses such as home repairs, car repairs, larger purchases, medical costs, or unexpected bills.
With Monefit, the product is a credit line without collateral. You receive access to a credit limit and choose how much to use within that limit.
Secured loan vs unsecured credit line
A secured loan uses an asset as collateral. For example, a mortgage is secured against property, and some vehicle loans may be secured against the car.
An unsecured credit line does not require this type of collateral. Instead, the decision is based on a creditworthiness assessment.
| Secured loan | Monefit unsecured credit line |
|---|---|
| Requires collateral | No collateral required |
| Often linked to a specific asset | Can be used for different personal needs |
| May involve longer application processes | Digital application |
| Usually paid out as one fixed amount | Flexible reusable credit limit |
| Asset may be at risk if repayments are not made | No pledged asset, but repayment obligation still applies |
Even though no collateral is required, borrowing remains a financial commitment. Missed payments can lead to additional costs and may affect your credit standing.
When can an unsecured loan be useful?
An unsecured loan or credit line may be useful when you need access to credit for personal expenses and do not want to use an asset as security.
Common examples include:
- Home repairs or improvements
- Car repairs and maintenance
- Unexpected household bills
- Medical or dental expenses
- Larger personal purchases
- Temporary financial flexibility
- Planned expenses where the final cost is uncertain
Before using credit, always consider the total cost and whether the repayments fit your budget.
Why choose Monefit for an unsecured loan?
Monefit is designed for people who want a flexible digital credit product without collateral.
No collateral required
You do not need to pledge property, a vehicle, or other assets to apply.
Credit line up to €15,000
Depending on the outcome of your creditworthiness assessment, you may receive access to a credit limit of up to €15,000.
Use only what you need
You can withdraw only the amount required for your current expense. You do not need to use the full approved limit.
30 days interest-free
Monefit offers up to 30 days interest-free, depending on how and when the credit is used and repaid.
Flexible repayment options
Repay according to the applicable terms and manage your credit line online.
Digital application
Apply online from your phone or computer and manage everything digitally.
How Monefit works
Applying for a Monefit credit line is simple and digital.
1. Submit your application online
Fill in the online application and provide the required information.
2. Verify your identity
You may need to verify your identity digitally as part of the application process.
3. Creditworthiness assessment
Monefit assesses your income, obligations, repayment ability, and other relevant factors before making a decision.
4. Receive your credit limit
If approved, you receive access to a personal credit limit.
5. Withdraw money when needed
Use only the amount you need, up to your available credit limit.
6. Repay according to the terms
Repay over time according to the applicable repayment terms. As you repay, available credit may become usable again.
Do unsecured loans cost more?
Unsecured credit does not use collateral, so the lender carries more risk than with secured lending. This can affect the interest rate, credit limit, and approval decision.
The final cost depends on several factors, including:
- The amount used
- The repayment period
- The interest rate
- Any applicable fees
- Whether repayments are made on time
Always review the full cost of credit before using an unsecured loan or credit line.
Representative example:
A €1,000 credit line, with a total amount payable by the consumer and total repayments of €1,209.87, a fixed annual interest rate of 36.72%, and an annual percentage rate of charge (APRC) of 44.30%. The APRC has been calculated on the assumption that the credit line is used in full and repaid in 12 equal monthly instalments at equal intervals, starting from the month following the drawdown of the credit line.
Unsecured loan without using the full limit
One advantage of a credit line is that you do not need to withdraw the full approved amount.
For example, you may receive access to a higher credit limit but only need a smaller amount today. In that case, you can use only the amount needed and leave the rest available.
This can be useful if costs come in stages, if the final amount is uncertain, or if you want access to flexible credit without applying again each time.
Who can apply?
You may be able to apply for a Monefit credit line if you meet the basic eligibility requirements and pass the creditworthiness assessment.
Typical requirements may include:
- You are at least 18 years old
- You are a resident of Estonia
- You have regular income
- You can verify your identity
- You can provide the information required for a responsible credit assessment
Approval is not guaranteed. Monefit assesses every application individually.
Responsible borrowing
An unsecured loan does not require collateral, but it still creates a repayment obligation.
Before applying, consider:
- Do I need to borrow?
- How much do I actually need?
- Can I afford the repayments?
- What is the total cost of credit?
- What happens if I miss a payment?
- Could I use savings or delay the expense instead?
Monefit follows responsible lending principles and only grants credit after assessing repayment ability.
Unsecured loan alternatives
Before choosing an unsecured loan, compare your options.
Credit line
A flexible option if you want reusable access to credit and prefer to use only the amount you need.
Small loan
Often used for smaller personal expenses with a fixed amount and repayment schedule.
Consumer loan
A common option for larger personal expenses, usually without collateral but often structured as a fixed loan.
Secured loan
May be suitable for larger amounts, but requires collateral and may place the pledged asset at risk.
Savings
If the expense is not urgent, using savings may reduce or remove the need to borrow.
Unsecured loan FAQ
Car loan
A traditional car loan is often used to finance the purchase of a vehicle. Monefit is different. It is a flexible credit line that may be used for car-related expenses, but it is not a secured vehicle finance product.
Consumer loan
A consumer loan is commonly used for private expenses such as repairs, household costs, larger purchases, or other personal needs.
Loan for car repairs
Car repairs can be difficult to postpone, especially if you rely on your car for work, family, or everyday transport.
Loan for home repairs
Home repairs and renovation costs can vary depending on the work required.
Loan for unexpected expenses
Unexpected expenses can create pressure on your monthly budget. This may include urgent household costs, repairs, or bills that were not planned in advance.
Medical or dental expenses
Medical or dental expenses can sometimes be unexpected. Before borrowing, it is worth checking whether the cost can be paid in instalments directly with the provider, covered by insurance, or managed another way.
