Article Categories
» Arts & Entertainment
» Automotive
» Business
» Careers & Jobs
» Education & Reference
» Finance
» Food & Drink
» Health & Fitness
» Home & Family
» Internet & Online Businesses
» Miscellaneous
» Self Improvement
» Shopping
» Society & News
» Sports & Recreation
» Technology
» Travel & Leisure
» Writing & Speaking

  Listed Article

  Category: Articles » Finance » Loans » Article

Unsecured Personal Loans: When The Pros Exceed The Cons!

By Marsha Claire

I'm sure no one reading this article is completely unaware about the entire paradigm of Personal Loans. With the popularity of Personal Loans constantly on the rise, every individual is forced to take it at some point of time. Personal Loans are taken, very simply for "personal" reasons. These could include buying a home, paying for tuition, medical assistance, clearing up grocery or credit card dues, paying loan instalments, making home improvements or even funding that needed holiday. It's the efficacy of Personal Loans that make them so popular these days. However, exploiting the ideal interest rate, ideal loan term and monthly repayments, fitting for your financial status is called "taking advantage of the opportunity."

As we all know Personal Loans have their denominations too. Let's get a little more familiar with "Unsecured Personal Loans."

Unsecured Personal Loans, just as the name spells out, do not obligate you, to put up any collateral against the loan. Collateral of comparable value, when placed in the lender's possession, reassures the lender of repayment. However, in Unsecured Personal Loans – there is no collateral. So, how does this work? Unsecured Personal Loans have no hidden clauses. To neutralise the risk they face, lenders offer these loans with higher interest rates, shorter loan amounts, shorter loan terms and less flexible options.

Features of Unsecured Personal Loans:
• The loan amount for Unsecured Personal Loans is smaller because of no collateral requirement and the value is restricted to about £25,000.
• The interest rates offered on Unsecured Personal Loans are higher, normally between 7% and 30%.
• The repayment term for an Unsecured Personal Loan starts from 6 months and can go up to 10 years. Usually, the loan repayment term is shorter than that for a secured loan.
• Unsecured Personal Loans are quicker to obtain because the process of valuation of collateral is absent. This is for those who need quick approval.
• Unsecured Personal Loans do not require collateral. So, if you do not have property or a home in your name, this loan is the perfect solution. Thus, these loans are ideal for non homeowners, renters and tenants.
• In case of Unsecured Personal Loans as no collateral is to be placed, it frees up the equity in your home (if you are a home owner) to be used for other purposes. Home owners, insecure about placing their home as collateral, prefer Unsecured Personal Loans.

All the above mentioned features do not necessarily make Unsecured Personal Loans bad. For those individuals who do not wish to put their home or any asset at risk of confiscation, in case of defaults with regard to repayment, these loans are more than you can ever ask for. They are specially suited for tenants, non homeowners, students staying away from home, etc. In the long run, Unsecured Personal Loans are more expensive than Secured Personal Loans. Unsecured Personal Loans should be taken only when an individual has nothing to offer as collateral; otherwise, taking this loan makes no sense.

With the absence of collateral, it is the credit history and repayment capacity displayed by a borrower that gets him the perfect loan options. If an Unsecured Personal Loan lender finds a borrower with good credit history and dependable repayment capacity, he will not hesitate in providing him with a better interest rate. Unsecured loans are also made available to people who are on income supports: like those over 60 years of age, people who do not have enough income to meet their basic needs

Taking the opportunity, it makes sense only if you exploit all the options to it's fullest. Beginning from the right lender and right interest rate to the monthly repayments, everything has to be tailored down to your financial need; only then can Unsecured Personal Loans do it's best for you!
About the Author
Marsha Claire is offering loan advice for quite some time. To find Loans UK, secured loans, unsecured personal loans, debt consolidation please visit

Article Source:
If you wish to add the above article to your website or newsletters then please include the "Article Source:" as shown above and make it hyperlinked.

  Some other articles by Marsha Claire
Bad Debt Secured Personal Loan: Untangle Yourself From The Shackles Of Debt!
Bad debt? Something that doesn't need an explanation after all… Bad debt happens to everyone today. It is nothing but an easy consequence of the rising standards of living, unpaid ...

Personal Loans: Financial Solutions Personalised For You!
Whether it's funding your necessary needs like overdue bills, credit card dues, pending rent, household repairs and medical emergencies or even extravagant spends like family holidays, Christmas redecorations, a new sports car or simply ...

Easy Unsecured Loans: Cutting Short The Distance Between You And Your Money!
Life has not only got more competitive but also tougher than before, with everyone creating a niche for themselves in the constantly advancing contemporary world. Be it at work, at home and just about ...

Cheap Debt Consolidation: Cutting Costs The Smart Way…
Debt Consolidation is something most of us are aware of and even if you are one of those who spend wisely and rarely fall into debt, debt consolidation is something you need to know about. ...

Instant Decision Secured Personal Loan: In The Right Place, At The Right Time!
A bill overdue? Medical situation that calls for your immediate attention? Loan instalment coming up? A late pay cheque due to which your ...

Low Rate Secured Personal Loan: Bringing Down The Costs!!!
For those of us doing the rounds of the loan market, Secured Personal Loans are a familiar topic that is gaining popularity by the day. With ...

  Recent Articles
One Hour Cash Advance
by Peter Hughberry

Solve Your Debts With Credit Card Debt Management Plan
by Elaine Owen

Approves loan amount faster - Online personal loans
by Ashley Lewis

Cheap Car Loans Uk:Grab The Opportunity To Buy A New Car!!
by Aldrich Chappel

Get Bad Credit Unsecured Loan with No Hassle in UK
by Anton Gabriel

For The Van Of Your Choice: Used Van Finance
by Bonnie Castle

Finance on Low Rates Is Possible Through Personal Loans
by Peter Taylor

Secured Loans- Money at reasonable rates
by Joanne Clive

The dos and don'ts of adverse credit car loans
by Joanne Clive

Redeem your business ideas with business loans
by Angelo Drew

Unsecured personal loans: Easier and convenient
by Elizabeth Swann

Low Rate Secured Loan: Avail The Benefits Of Low Rates
by Aldrich Chappel

Can't connect to database