An unsecured loan is a loan where the lender provides finance
without any form of material security like
this one from cahoot.
In the case of unsecured loans or personal loans in the UK, this
usually relies on you having a good credit history and being a good
credit risk. Most lenders will use the services of a credit
agency such as Equifax to check this.
You can get unsecured loans for up to around £25,000, although
this will depend on your personal circumstances. Repayments are usually monthly and can be for anything
from a year to five or more years. You may be charged a penalty if you repay your loan earlier than agreed, and you should check each lender’s individual policy with regards to this.
Lenders charge interest on the amount you borrow, which is referred to as the Annual Percentage Rate (A.P.R).
Unlike secured loans, unsecured loans are generally offered on a
fixed APR, although the rate may vary according to the amount you
want to borrow
Unsecured loans are available to both homeowners and
non-homeowners. And most lenders do not put restrictions on
what you can borrow the money for. To find out more about
unsecured loans and personal loans in the UK click on any of the
links on the left hand side
Secured Loans Car Loans Student Loans About Loans
