Money is needed not only by those who can provide assets as collateral, but tenants, businessmen and the unemployed too. Even homeowners may not feel like risking their home to take a loan. And so, we have unsecured loans- loans which do not require one to put up security. They can be issued for purposes ranging from the big ones like home improvement and full blown wedding expenses to the smaller ones like car repair and holiday finance.
To get an unsecured loan, all you need to have is income, credit record and repayment capacity that meets the standards set by the lenders you are interested in. All these are checked to see whether you will be able to make the repayments regularly and fully or not.
You can get an unsecured loan for an amount between £1000 and £25000. The period of repayment usually starts from 6 months dating from the day the loan was issued. It may last till 10 years, depending upon how much you have to repay. For these loans, payments in monthly installments are the norm.
Compared to loans that are provided against security/collateral, unsecured loans are charged with a higher rate of interest. However, unsecured loans are approved more swiftly as there is no need to evaluate your assets. In case of emergency, an unsecured loan is thus a more feasible option.
Unsecured loans are available with both traditional lenders and online lenders. First check out their quotes and compare them to see who is offering cheaper rates and repayment terms most suitable to your situation. And never borrow more than you need or more than you can afford to pay back. You may be thinking that unsecured loans are risk-free but if you fail to pay them back your assets might be taken into account. Therefore, be prudent, know your needs and fulfill them with an adequate unsecured loan.
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