Unsecured Personal Loan - When money all you need

An unsecured personal loan is a personal loan where the lender has no claim on a homeowner's property should they fail to repay. Instead, the lender is relying solely on the ability of a borrower to meet their loan borrowing repayments.

If your home is the only asset that you have, it is understandable that you are not willing to put it at risk. But if you haven't put aside enough money into your savings account for extraordinary expenses, you'll sooner or later need some sort of financial assistance.

Requirements

When this happens, an unsecured personal loan will be the answer to your financial difficulties. An unsecured personal loan is not guaranteed by any asset. In fact, your credit score and history, income and overall outstanding debt will be the only things taken into account when the lender has to decide whether to approve your loan or not.

No Risk of Repossession

So what is the benefit of an unsecured personal loan? Since there is no collateral, there is no risk of repossession and the lender will probably find it very difficult to recover his money if you default on the loan monthly payments. Your home will remain safe for the time being.

The repayment period will range from anywhere between six months and ten years. Unsecured personal loans are offered by traditional financial institutions like building societies and banks but also recently by the larger supermarkets chains.

An unsecured personal loan can be used for almost anything - a luxury holiday, a new car, a wedding, or home improvements.

An unsecured personal loan is good for people who are not homeowners and cannot obtain a secured loan for example; a tenant living in rented accommodation.

Each potential borrower has distinct personal reasons to apply for a loan. Some may want to invest in a type of plastic surgery or fund their daughter's college years. Applying for an unsecured personal loan can help you realize those desires without risking personal property or assets. With a good credit score or even a less than perfect credit history, non-homeowners and tenants alike have the opportunity to fund any such personal need.