Compare Loans – Choose between Secured & Unsecured Type
Nowadays, you get loans for almost every occasion. Credit market is always alive with buzzing activities. There are so many loans to avail – business loans, home loans, vehicle loans, education loans, tenant loans and many more. In spite of all these varieties, these loans can be categorized under two heads – secured loans and unsecured loans. If you compare loans, you will surely get the best as per as your needs.
The major difference between the secured loans and unsecured loans is requirement of collaterals. Among other key differences, credit history checking and interest rate are worth mentioning. Your credit history gives a glimpse of your past and present financial status.
If you are applying for secured loans, the lenders will be more interested to check your credit report because they always want to be sure about the capability of the borrowers to clear the dues on time. Your collaterals act as a guarantee for them and so interest rate for secured loans comes easy on wallet.
If it is secured loan you are looking for, then you will get the following benefits (though these may vary from one lender to another):
A whopping loan amount: You may expect to get £75,000 or more.
Low interest rate: It varies between 7.9% and 19.9%. The figure includes nominal rate plus charges for loan processing.
Flexible payback rules: Secured loans allow the borrowers to enjoy negotiable payback rules in form of grace period or early pay offs.
Extended terms for loan repayment: Repayment term stretches for a longer span of twenty five years.
There are, however, some major disadvantages of secured loans:-
Firstly, loan processing is really slow due to the over scrutiny of the submitted documents.
Secondly, if the borrower fails to meet the payment repeatedly, the lender is entitled to foreclose the property.
Are you in hurry to get secured loans? Well, compare loans of both secured and unsecured type. This way, you can make a wise decision.
If it is an unsecured loan, you get to enjoy a slew of advantages:-
Faster approval: As lesser dossiers are asked for, so the loans are granted as swiftly as possible.
Bad credit not a problem: Due to the absence of no credit checking, unsecured loans can be easily availed by the poor credit report holders.
Less of risk: As there is no requirement for any collaterals, so there is no threat of property seizing if the borrow defaults on payment.
However, the major disadvantage is:
Non-negotiable payback rules: Unsecured loans are non-negotiable and so, never expect flexible repayment terms.