Personal Loans UK - Way to Borrow Finance at Competitive Rate

By: Peter Taylor

In the UK, you can easily source required financial support from variety of lenders who are providing loans for personal purposes. Be it home improvements, buying car, going to an expensive holiday tour, enjoying your wedding or debt consolidation, a personal loan for specific personal purpose is carved out for you. There are no restrictions as to how you are going to use the loan. You can put the loan to variety of purposes at the same time.

In the UK, personal loans come in secured or unsecured categories. Secured personal loans are provided against a valued asset of the borrower. Home, vehicle, valued papers etc can be pledged as collateral. The advantage of collateral is that you get secured personal loans at lower interest rate. You can also borrow up to ?75000 for 5 to 30 years of duration to repay it.

Unsecured loans are risk free loans as you are not required to pledge any property as collateral. This makes the loan easier and especial for tenants or non-homeowners, though homeowners can also borrow money under the loan. These loans have little risks for borrowers and are highly risky for the lenders. Therefore unsecured Personal Loans UK carry higher rate of interest. The loan amount usually ranges up to ?25000 with shorter repayment duration of 5 to 15 years.

The UK lenders approve personal loans for borrowers with bad credit history including late payments, arrears, payment defaults, CCJs and IVA mentioned against their names. Thus these loans are also a tool for improving credit score once you pay back the loan in time.

Prefer online lenders in the UK over banks and financial institutions when searching fore a suitable personal loan deal. Online lenders have lower and competitive rate deals for all type of borrowers and processing cost is less. Online lenders take less time to approve the loan.

Personal Loans
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