Personal Loans - finance for all
- Date: 2007-01-31 - Word Count: 312
Share This!
Loans are the most sought after and efficient way to earn money. It caters to all kinds of situations, like buying a car, renovating house space, going for a holiday etc.
There are generally two types of personal loans in the market today: secured personal loan and unsecured personal loan. Secured personal loan is secured against collateral. In other words, the loan taker has to provide an asset against which the loan is given. There are several advantages with this loan. One can borrow a greater sum and have a longer repayment period - £75,000 and 30 years respectively. Also, the interest rates are alleviated with collateral in place.
The one major disadvantage is that the lender can repossess the collateral if the borrower does not make the repayments on time. Also, the loan taker has to go through tedious documentation work for the loan amount to be approved.
With an unsecured personal loan, the borrowable amount is a lot less and the repayment term is also small - £25,000 and 10 years respectively. The absence of collateral also gives rise to elevated interest rates, as the lenders want to ensure some payment back in case the borrower defaults.
However, there are advantages with this loan type that makes it the most popular loan going around in the market. Firstly, borrowers do not run the risk of losing their collateral with unsecured personal loans. Secondly, the tedious paperwork of secured loans is missing in this case. And this loan is ideal for short-term purposes.
Personal loans should not be availed in a hurry. Loan takers should always take time out to undertake proper research and do a thorough comparison analysis before availing any loan. Of the many places where one can avail personal loans, the online option happens to be the best. Not only does it offer loan choices but it also offers convenience.
There are generally two types of personal loans in the market today: secured personal loan and unsecured personal loan. Secured personal loan is secured against collateral. In other words, the loan taker has to provide an asset against which the loan is given. There are several advantages with this loan. One can borrow a greater sum and have a longer repayment period - £75,000 and 30 years respectively. Also, the interest rates are alleviated with collateral in place.
The one major disadvantage is that the lender can repossess the collateral if the borrower does not make the repayments on time. Also, the loan taker has to go through tedious documentation work for the loan amount to be approved.
With an unsecured personal loan, the borrowable amount is a lot less and the repayment term is also small - £25,000 and 10 years respectively. The absence of collateral also gives rise to elevated interest rates, as the lenders want to ensure some payment back in case the borrower defaults.
However, there are advantages with this loan type that makes it the most popular loan going around in the market. Firstly, borrowers do not run the risk of losing their collateral with unsecured personal loans. Secondly, the tedious paperwork of secured loans is missing in this case. And this loan is ideal for short-term purposes.
Personal loans should not be availed in a hurry. Loan takers should always take time out to undertake proper research and do a thorough comparison analysis before availing any loan. Of the many places where one can avail personal loans, the online option happens to be the best. Not only does it offer loan choices but it also offers convenience.
Related Tags: personal loans, online personal loan, unsecured personal loan, cheap rate personal loans, cheap rate loan
Your Article Search Directory : Find in Articles
Recent articles in this category:
- The Secrets to Getting Low Down Payment Car Insurance
Upon purchase of a new car, there is almost always a requirement to buy an auto insurance policy as - The Wisdom Behind Auto Insurance Comparison Quotes
No one in his right mind would not go for a good deal. In fact, everyone is out on their feet and ru - The Benefits of Auto Insurance Comparisons Florida
Insurance can be expensive. This is something everyone knows about especially in the sunny state of - Auto Insurance Florida: The No-Fault Policy
There are different kinds of car insurance offered by a wide range of providers today. Different sta - Finding the Cheapest Auto Insurance Companies
Everyone is asking and searching for the cheapest auto insurance companies available today. Consider - How do You Compare Private Health Insurance Cover in Australia?
Deciding what is the best and most affordable private health insurance cover can be easy if you take - How Payment Protection Insurance Was Mis-Sold
For over six years the issue of Payment Protection Insurance (PPI) and how it was mis-sold to custom - Finding Quotes For Auto Insurance Online
One of the many concerns when you are shopping for auto insurance is being able to get access to quo - How You Can Find the Best Auto Insurance Online
When it comes to renewing your car insurance you are going to quickly discover that there are a numb - Guidelines For Searching For Auto Insurance Online
The internet can be a great source of discounts and values related to auto insurance. However, many
Most viewed articles in this category:
- Trading Forex With Pivot Points
Forex Pivot Point Trading are used today by Forex Traders and are calculated on the previous days mo - Where To Search For Free Grants
Where do you look for free grants? The search must be thorough or it could be an exercise in futilit - The Connection Between High Blood Pressure and Salt
We are a society of Salt Addicts. It cannot be denied. When you look at the things we do and the pla - Tips For Avoiding HYIP Scams
Before knowing about HYIP Scams, refer to the functioning of HYIP or "High Yield Investment Programs - Getting Credit After Bankruptcy
Consumers do not have to live sans credit following a bankruptcy. By following certain steps consume - Tips For Choosing A Credit Card
Are you looking for that perfect credit card? If so, you may be confused about what exactly to look - Cheap Car Insurance For Teens Online
Many elements determine a car insurance policy. Car insurance companies look at the person's age, hi - What Exactly Is Free Grant Money?
You can apply for free grant money from various government agencies. But where exactly does this mon - Small Business Owners Marketing and Customer Service
Marketing can be time-consuming, but it doesn't have to be hugely expensive now, thanks to the Inter - Apply Online For A Credit Card - How To Choose A Card?
The best type of credit card for you will be dependant on how you intend to use the credit card. Are
