Friday, January 11, 2008

Unsecured Loans: Providing a Helping Hand

No one likes to take a loan by placing a security. Secondly, there is always a fear in the borrower’s mind that lenders may repossess the property if the loan is not repaid in time. But the option of unsecured loans has some good news for the borrowers. These loans are provided without the placement of any collateral. So the borrower can get his finances without worrying about his valuable asset.

This loan can be used to meet needs like

• Home improvement,

• Car purchase,

• Consolidating debts,

• Vacation

• Meeting wedding expenses and a host of other needs.

As these loans are accessible without placing a security these can be easily availed by tenants and non homeowners. The income and repaying capacity of the borrower is taken into consideration while advancing these loans. Credit status is also the governing criteria.

A borrower can avail from £1000 up to £25000 with these loans. This amount can be repaid within the period of 6 months to 10 years. A borrower can repay the amount from the monthly income. To cover the risk factor a lender may charge slightly high interest rate. However, today the market has expanded so much that it is possible to find lenders who offer loans at comparatively low interest rates.

Bad credit borrowers who have IVA, CCJs, arrears, bankruptcy against their name can also apply for this loan. By convincing the lenders about their income and bank documents they can get a loan without difficulty.

To find these loans at favorable terms and conditions a borrower may use the online method. By analyzing quotes of various lenders borrower can select a deal. Also as there is no collateral involved, the processing of this loan is fast.

Unsecured loans are a good way to accomplish the financial wants of a borrower. As these loans do not require involve placement of collateral they are highly preferred loans.


Source:
http://www.articlesbase.com/loans-articles/
unsecured-loans-providing-a-helping-hand-301614.html

1 comment:

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