Unsecured Loans UK – Borrow Without Any Risks

While thinking for taking a loan, you should not at all worry if you have not a valued property in your name. In the UK you still can avail a loan as there are many lenders offering unsecured loans for any purpose. Even if you are a homeowner, you are eligible for unsecured loans. You can apply for an unsecured loan for variety of purposes like home improvements, buying a car, paying for holiday or wedding expenses or for debt consolidation.

Main feature of unsecured loans is that it is approved without collateral. Tenants or non-homeowners are therefore fully at ease in taking the loan. Also it is a risk free loan as none of the borrower’s property is involved in it. The loan amount under unsecured loans in the UK ranges up to ₤ 25000. The loan has to be returned in 5 to 15 years of shorter duration. Approval of unsecured loans for the UK people is mainly based on verifying that the borrower can repay the loan installments without any problem. So the lender first sees the borrower’s income, banks statements and employment record prior to approving unsecured loans.

However unsecured loans have a draw back also. Since there are risks for lenders, they tend to charge higher interest rate on unsecured loans. The interest rate goes even higher for bad credit history people. For good credit borrowers, however, the rate is comparatively lower.

Those people having credit problems like arrears, late payments, payment defaults or county court judgments in their names are also eligible for unsecured loans, provided they are able to prove their capacity to repay the loan. But different lenders must be compared first so that you avail unsecured loan at comparatively lower rate for your circumstances.

Source: http://EzineArticles.com/?expert=Tim_Kelly