Unsecured loans are one of the most common loan deal availed in the UK. The reason behind this is the lack of collateral that needs to be placed against this loan option. Thus, this loan type is a feasible option for tenants, self-employed, students, or retired people. This loan type is a good deal for homeowners who don’t want to put their home on stake. Unless there is a dire necessity, no one wants to risk their homes against a loan.
An unsecured loan on the other hand is a risk-free option for the consumers. They only have to convince the lender about their worthiness to get their loan application approved. The lack of collateral ensures that there is less paper work. That does not mean that there is no paper work at all. Borrowers have to furnish proof of income along with salary slip. In some cases, the lender may demand that the borrower is with his present employee for more than a year. But the terms and conditions for unsecured loans vary from lender to lender.
From the lenders point of view, unsecured loans are very risky. There is no surety that they will get back the money. Lack of collateral means there is no security being placed against this loan type. http://www.shakespearefinance.co.uk/