Unsecured Personal Loans - Risk Free Borrowing Options

 


Visitors: 215

Loans are a form of financial aid that have to repaid with interest. Banks, building societies, private and online lenders offer loans to those in need of financial help. An agreement is signed in between the borrower and the creditor, whereby each of them agree to the terms and conditions of the loans deal. Loans can be either secured or unsecured. The former requires the borrower to pledge his home as security whereas unsecured personal loans need not be supported by any asset.

The loan agreement of both secured and unsecured personal loans contain the following details.

1. The Loans Tenure- Loan tenure is the loan period or the repayment period during which the borrower is required to repay the loan as equated monthly installments (EMI). The loan tenure for secured loans is longer than unsecured personal loans.

2. Details about the termination of the loans- This contains clauses regarding what charges and penalties(if any) will be borrower be required to pay to the lender if he decides to repay the loan before its maturity date.

3. The true cost of the loan- The loan agreement contains all vital details like the nominal interest rate, the brokerage charges, the APR, the annual charges and others. This helps the borrower to know that how much he will actually be paying for the loan.

The borrower should read each and every detail mentioned in the loan agreement properly before finalizing the secured or an unsecured personal loan. Any objectionable clause should be sorted out beforehand with the help of a mutual decision taken by the lender and the borrower.

Especially in the case of secured loans, the borrower should thoroughly check the loan agreement as the home of the borrower is at risk. Even in the case of unsecured loans, borrower should take every possible precaution to prevent himself from falling in to bad loan deals.

The author is a business writer specializing in finance and credit products and has written authoritative articles on the finance industry. She has done masters in Business Administration and is currently assisting online-unsecured-loans as a finance specialist.

For more information about Unsecured Personal Loan. Please visit at http://www.online-unsecured-loans.co.uk

(383)

Article Source:


 
Rate this Article: 
 
Fast Unsecured Personal Loans - For A Loan Without Any Risk
Rated 4 / 5
based on 5 votes
ArticleSlash

Related Articles:

Unsecured Personal Loans - Sure Way To Risk-Free Money

by: George Bell (January 04, 2008) 
(Finance/Loans)

Unsecured Personal Loans - Risk Free Money

by: Shain Johnson (April 10, 2008) 
(Finance/Personal Loans)

Unsecured Personal Loans Get Access to Risk Free Money

by: Abner Cassa (September 23, 2008) 
(Finance/Unsecured Loans)

Unsecured Personal Loans Risk Free Finances to Meet Your Needs

by: Allan Thomas (September 04, 2008) 
(Finance/Personal Loans)

Unsecured Personal Bad Credit Loans - Risk Free Money

by: Karen Wardman (April 15, 2008) 
(Finance/Personal Loans)

Unsecured Personal Loans - Easy Money Made Risk-Free

by: Johns Tiel (February 12, 2008) 
(Finance/Loans)

Unsecured Tenant Loans UK Enjoy Collateral Free Borrowing

by: Andrew Bake (September 04, 2008) 
(Finance/Unsecured Loans)

High Risk Unsecured Personal Loans

by: Marcus Peterson (July 27, 2006) 
(Finance/Loans)

Unsecured Personal Loans - Finance Without Undertaking Any Risk

by: Turk Malloy (December 26, 2007) 
(Finance/Loans)

Fast Unsecured Personal Loans - For A Loan Without Any Risk

by: Christian Phelps (March 10, 2008) 
(Finance/Personal Loans)