If “collateral” is the term that does not suit your financial condition and is a barrier while availing loan to fulfill your financial dreams than unsecured loans are a good choice. Unsecured loans do not require the borrower to keep any assets like property, vehicle, house etc against the loan amount.
Unsecured loans can be used for various purposes like wedding, education, vehicle purchase, home improvement, vacation and debt consolidation or any other personal purpose. The loan amount offered under unsecured loans ranges from £5,000-£25,000 with a repayment term of 1-10 years. Since the tenure for repayment is long the borrower can repay the loan amount in easy small monthly installments. However the exact loan amount which the lender may offer depends upon the borrower’s credit history, ability to repay, income status etc.
Unsecured loans offer many benefits to the borrowers. The most important benefit of an unsecured loan is that there is no fear in the mind of the borrower for loosing of his assets, in case he defaults. Non presence of security makes the interest rates slightly higher in an unsecured loan.
Borrowers with bad credit history can also avail unsecured loans though the interest rate charged would increase. All borrowers with CCJs, arrears, defaults, bankrupts can apply for unsecured loans. Unsecured loans are approved faster for no collateral are required to be reviewed while granting the loan and hence significant time is saved.
Unsecured loans are available online which makes easily accessible from the comfort of the borrower like home or office. The borrower can apply for unsecured loans online by just filling in a single online application form. The borrower can also get the quotes by different lenders online easily which can be compared by him to make the best choice for availing unsecured loans. There are many lenders ready to offer unsecured loans in the market and the interest rate offered varies with the borrower’s credit history, income status etc. However the borrower has to do a bit of research to find the best suited deal for him.
If you are a borrower in need of the loan and do not have anything to offer as collateral against the loan amount than unsecured loans can be a good option. Unsecured loans is a hassle free process and looks for all your financial needs.
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