Monday, April 30, 2007

Unsecured Loans For Your Needs

You must have heard about secured loans, but have you ever heard about unsecured loans? If not you must know about it, unsecured loans are nowadays grabbing in the market all because of fascinating features enclosed in it.

If you are one among those borrowers who don't possess any valuable assets like home, car or valuable papers to lend for a loan then you must opt for unsecured loans. In unsecured loan, borrower willingly or unwillingly may not place his collateral against the loaned amount. For this reason unsecured loans are quite popular among the tenants, non-homeowners, students etc.

In unsecured loans borrower an avail the amount ranging from £1000 to £25,000. The cash approval in unsecured loans takes lesser time as no property or collateral evaluation is required. The repayment period for the unsecured loans generally ranges from 5-10 years.

In unsecured loans, no collateral is placed as a security against the loaned amount though lender is at higher risk. To compensate the risk factor lender usually charges higher interest rate to his borrower. But borrower's proper research can lead him towards feasible interest rates.

Unsecured loans can be used to fulfill the various needs of the borrower like

* Debt consolidation

* Vacation

* Education

* Car purchase

* Wedding

* Home improvement

Borrower's who are marked as bad credit like CCJ's, IVA, defaulters, arrear holders etc can also avail the unsecured loans but at higher interest rate compared to borrowers with good credit history.

Demand for the unsecured loans is increasing as borrowers who possess valuable asset also prefer to opt for the unsecured loans as they are free from threat of collateral repossession by the lender. But on non-repayment or irregular repayment of the loaned amount, lender may follow a legal step.

Unsecured loans help to fulfill the needs of the borrower without pledging the collateral against the loan amount.

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