A Guide to Get Unsecured Personal Loans
Personal loans are broadly classified as secured and unsecured personal loans. For an unsecured personal loan the borrower will not have to pledge
any of his property as collateral. So, generally tenants take unsecured personal loan, as they do not own any property. Even homeowners are eligible
for this loan if they are not willing to provide their property as collateral.
As a borrower of unsecured personal loan, you will have the following advantages:
Unsecured personal loans are offered without any collateral and these loans are availed by both tenants and homeowners. Unlike the secured
personal loans the processing and approval of unsecured personal loan are fast. There will be no risk of property repossession to the borrower if any
missed repayment occurs. Unsecured personal loans are taken for several personal purposes such as holidays, weddings, higher education, debt
consolidation, buying a car etc. Persons with bad credit history are also eligible for availing unsecured personal loan. Unsecured personal loans are a
privilege for them and they can improve their credit records with timely loan repayment. Debt consolidation can also be done with this loan.
The unsecured personal loan is provided with a slightly higher interest rate and that is because of the collateral absence. But still there are lenders
who offer unsecured personal loan with competitive interest rates. The lender believes solely on the repayment ability of the loan borrowing person.
Various lenders offer the unsecured personal loan and hence the loan condition also varies. Before granting a loan, the lender checks the borrower's
character, repaying capacity and capital. The unsecured personal loan amount may range from $500 to $25,000. The term of loan repayment varies
from six to ten years.
Traditional financial institutions such as banks, building societies etc. offer unsecured personal loan and large super market chains also offer such
loans. Unsecured personal loan amount can be utilized even for