One of the most annoying times in your life comes when you need money desperately but you don’t have them and at the same time you feel wanted to apply for a loan as you don’t have or don’t want to risk your property by offering them as collateral. But with the stiff competition and with increasing number of lenders in loan market it has become easy to get an unsecured loan and that too at a much lower interest rate than ever.
Facts related to unsecured loans
These loans never ask you to risk your property as collateral. So, it is risk free to apply for these loans as you will not be repossessed of your property in case of defaults and arrears. Unsecured loans are available even to those who don’t have good credit record against their name. Tenants can also avail an unsecured loan. Lenders judge the amount that could be lent depending on your income, ability to pay back, your past records and not to miss out your credit history to some extent.
With all these under consideration it is possible to get an amount around £1000 through £25000. Interest rate of these unsecured loans are certainly on higher side when compared to secured loan as the risk factor involved with lender is minimum. But, it has become possible to obtain a cheap unsecured loan which is very much attributed to continuously mushrooming loan market with all kinds of competition that has forced the lenders to cut down the interest rate. Repayment duration varies from 6 months through 10 years.
Benefits of unsecured loans
Best part of unsecured loan is that it brings you the money when you need and that too without any potential risk of losing your property. Lenders offering these loans are not very much concerned about your credit record and bad credit or even ccjs etc can’t become a factor of denial. Loan amount can be used for various purposes including consolidation of your debt which helps to improve credit record. Also the time taken for the approval of loan is less as there is no time wasted in making estimate of the market value of your property that is used as collateral.