Personal Loans: Loans Without Collateral

by : Adam Jaylin

Basically, a personal loan is an unsecured loan where you don't have to put your property as collateral in order to procure a loan amount. There are 70 types of lenders in the UK offering personal loans. The lenders include traditional high street banks, building societies, online banks, supermarkets and the private lenders.

Personal loan can be sought for varied purposes like going for a holiday trip, buying a car, consolidating your credit card debts etc. The risk associated with the lenders is high, that is why they prefer to offer a personal loan to the people with a perfect credit history. The personal loan amount varies form ? 500 to ? 25,000 and the repayment term varies from 1 to 10 years.

You can find many advantages with an unsecured loan. The first and the foremost is that you can avoid the threat of repossession of your property. However, the lender can take appropriate legal action against you if you are unable to keep up the repayments in the stipulated time frame. Secondly, you can procure your loans faster as compared to a secured loan. A lot of time is involved during the processing of a secured loan because it involves the valuation of the property. This time period can be saved during the processing of an unsecured loan. Above all, you can find less paper work with this loan type which reduces the hassles and makes the loan process easy.

It is advisable to go for a proper research work before you can opt for a personal loan. The best way to search for a personal loan is the Internet. There are many sites which can offer you a online. Once you fill up the loan application form and send it, the lenders may contact you with suitable loan quotes.