There are varieties of purposes that one may need a loan for. Those loans which are provided for personal purpose are known by personal loans. The loan market is crowded with personal loans, with a loan designed for a specific purpose. So you can go for a special personal loan to renovate home, buy car, go to long vacation tour, wedding, debt consolidation etc.
For covering every borrower under its fold, Personal loans are categorized under secured or unsecured loans. Secured personal loans are usually opted for when greater amount is required. These loans come against borrower’s home or any asset of great value. The loan amount under secured personal loans usually ranges up to £75000, determined on collateral value. But the biggest benefit of secured personal loans is that borrower pays interest at lower rate, which makes the loan repaying fairly easier. To make the repayment further smoother, one can choose to repay the loan in 5 to 30 years.
Unsecured personal loans provide smaller amount that usually ranges up to £25000. The lender approves the loan without taking collateral, enabling easy access to tenants or non-homeowners, though homeowners also can avail the loan. But be prepared to fork out interest at higher rate as you are a risk for the lender.
Borrowers with bad credit history also are being approved for secured or unsecured personal loans. You may be having late payments or arrears in your name or you may have defaulted on payments or have CCJs and IVAs --- whatever may be your credit problem, personal loans are available to such borrowers.
Personal loans should preferably be sourced from online lenders for competitive rates. But compare online lenders as well to find a deal that suits to your circumstances.
Author: George Bell
