Personal Loans: Dont Compromise With your Desires

By: Steve c clark

Our life is driven by desires. These are desires which require money for fulfillment. And often we either compromise with them or postpone them for the lack of money. But with personal loans easily available for the U.K. citizens, we can turn those long cherished desires into reality.

Personal loans are loans which are offered to people for purposes for which they want. It can be any of the following, for business purposes, debt consolidation, for home improvement, for weddings, for education or even for the vacation purposes.

Forms of personal loans
Secured loans are available when a borrower offers a security to his lender which can be any of his assets, but if the borrower provides his home as a security this type of loans are known as home equity loans. The period of time can be as large as up to 25 years. You can get a loan of 125% of your collateral or up to ?250000.

Unsecured personal loans are generally taken for a short period of time usually ranging from 1 year to 5 years without pledging any collateral against the loan. With the unsecured loans you can get a loan of around ?15000 or less. The interest rates usually fluctuate in between 8.4% to 17.90%. The borrower however has an option of choosing between a fixed or variable rate.

Features of personal loans

The eligibility for the procurement of these loans is:
-Should be over 18 years of age
-Should be UK resident
-Should have a good credit history
-Should have a current account with a UK bank

Lenders calculate the typical Annual Percentage Rate (APR) of a personal loan in conjunction with a system called risk based pricing. This means that they assess each individual's circumstances and credit history before deciding what rate to offer. The interest rate is also a variant to the loan amount taken. The rate is higher for small loan amount and vice-versa.

Don't compromise with your desires because of financial constraints, take personal loans and spend the money as you wish.

Personal Loans
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