Personal Loans - Finance as and When Required

By: David Wilson

Unlike finances, the scope of human needs is immeasurable... We can categorise our monetary requirements as follows:
Urgent needs like surgery, extended treatments, late education fees, debt consolidation and more
Routine expenses related to home, business, health, education, wedding, vacation, holiday season, vehicle, debts, bad credit and more
Lifestyle luxuries like spa treatment, spiritual healing, flying lessons, cosmetic surgery, gambling and more
Personal loans are available in both secured (for homeowners and property owners) and unsecured (for tenants, homeowners, property owners and students) form.
Secured personal loans, as the name suggest, can be availed by offering collateral against the loan amount. Advantages are - quick attention, high credit limit, competitive low APR, flexible payback terms and negotiable loan conditions.
Unsecured personal loans, on the other hand, can be availed without offering collateral.

Advantages are - no collateral (no deposit against the loan amount), less paperwork (no red tape), quick service (fast loan processing) and no immediate risks in the event of repeated defaults or non-repayment.
Secured personal loans have one risk, i.e., collateral seizure - in case of repeated defaults or non-payment, the lender gets the authority to sell the pledged asset to recover his investment. And, one limitation, i.e., slow approval process - the loan application is approved after time-consuming property evaluation along with other credibility factors.
Unsecured personal loans, too, have certain limitations - limited amount, high APR, fixed payback terms, non-negotiable loan clauses - because in the absence of collateral, the stakes are normally high for the lender.
Though both sub-types have advantages and disadvantages, a recent figure shows that more and more people in the UK are availing secured personal loans, as they are much cheaper than other loan options like unsecured personal loans and payment cards (credit cards, store cards, charge cards and overdrafts).

On the basis of requirement, the credit market offers the following products: bad credit loans, business loans, car loans, debt consolidation loans, education loans or career development loans, holiday loans, home loans, homeowner loans or home improvement loans, wedding loans.
The above-mentioned products list proves that the scope of personal loans is very vast... So, choose wisely for optimum benefits.

Personal Loans
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