Why Choose a Personal Loan?
Are you wondering why choose a personal loan? One of the main reasons for choosing a Personal loan is the flexibility. There are a variety of Personal loans available which can be divided into two categories: secured personal loans and unsecured personal loans. Homeowners can apply for a Secured personal loan (using their property as security), whereas tenants only have the option of an unsecured personal loan.
Secured Personal Loan:
Lenders can be more flexible when it comes to Secured personal loans, making a Secured personal loan possible when you may have been turned down for an unsecured personal loan.
You can borrow any amount from Ј5,000 to Ј75,000 and repay it over any period from 5 to 25 years.
The only disadvantage to a secured personal loan is that there is a risk of losing your home, if for whatever reason, you are unable to keep up the repayments.
Unsecured Personal Loan:
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.
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.
The amount you are able to borrow can start from as little as Ј500 and go up to Ј25,000.
The repayment period will range from anywhere between six months and ten years.
An Unsecured personal loan can be used for almost anything - a luxury holiday, a new car, a wedding, or home improvements.
Unsecured personal loans are invariably more expensive than secured loans, and the repayment periods demanded by lenders are shorter too.
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