The demand of collateral is something that cannot be met by every borrower under the sun. For those who cannot, unsecured loan is the financial refuge that has been answering their needs for a long time. It is simply a loan that can be obtained without pledging any personal asset of yours as collateral. It is the loan choice most appropriate for you if you are a non-homeowner or someone without any valuable asset to your name. It can also answer you financial needs if you are someone who is not keen on pledging personal assets for the sake of loaned money.
An unsecured loan is approved by taking the requirements, financial condition and credit status of the borrower into account. Information regarding your credit report, credit score, monthly income, debt-to-income ratio will be required. You also need to be prepared with the knowledge of how much money will suffice for your personal venture. Based on an evaluation of all these factors, you will be approved a loan amount in the range of £1000 to £25000. The repayment tenure could last for a time period between 1 and 10 years.
Loans which are unsecured tend to carry interest rate which is a little high if you compare them with those charged on the loans provided against security. That is why you are always being advised to compare loan quotes. Loan quotes let you know the total price of the loan deal. By comparing various quotes, you will be able to figure out which ones are more affordable than the rest. It will be preferable to choose online services for this matter as quotes are provided free and fast on the online lenders’ sites.
An unsecured loan can finance your home renovation, debt repayment, college education, medical procedures and a variety of other needs. While selecting a loan amount, don’t just consider whether it will cover your requirement- remember to check if it can be repaid easily too. That way, your unsecured loan can act as your friend in need instead of becoming a financial burden.