Unsecured Personal Loans: Get it When you Want it

By: Bernard Ethen

Are you one of those unfortunate ones whose application gets rejected by banks because of lack of collateral? Well, the good news is that nowadays even tenants and people living with their parents can apply for loans and most importantly get it too.

A non-asset based loan was the necessity of the day as there are vast sections of society who cannot or in most probability does not want to risk their asset for some funding assistance. It's not necessary that all monetary requirements have to be huge. There are many instances where homeowners will (and rightly so) be apprehensive about pledging their homes against a loan.

Unsecured personal loans allow borrowers to take a loan up to ?25,000. Tenants, as well as homeowners can avail this loan. Some of the important papers that need to be given to the banks or financial lenders include employment proof, proof of income in the form of salary slip, residential proof, credit card statements, and tax papers.

Although, it's true that unsecured personal loans applications get rejected quite a lot, there is a reason behind this. As no property is involved, the only way through which a lender can judge the credit worthiness of a borrower is through his credit score. Every application is decided on a case to case basis.

Lenders recheck and verify each loan request before processing the case any further. Therefore, putting in false information is next to suicide as far as loan processing of your application is concerned. The repayment period for unsecured personal loans can be anything in between 12 months to 10 years.

A good credit score is a must as far as unsecured personal loans are concerned. Although, there is no general consensus of a perfect credit score but it is accepted that a credit record which doesn't have any missed payments, defaults, arrears, County Court Judgements (CCJs) and bankruptcy. A credit score above 700 is considered to be good according to most lenders.

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