Loans That Count on Your Repayment Capacity not on Home

by : Aisha Cristal

Man from the dawn of civilization has an unavoidable trait of dreaming and he wants to fulfill those dreams as sometimes the requirements are so expensive that, existing income can not afford it. Hence, to fulfill these desires, people used to borrow. When finances are required,loans can be taken up from the UK loan market at competitive rate of interest.

There are two basic factors which decide the loan availability. One is the security pledging capacity and the second is the credit score. lenders offer loan plans against the immovable property of the borrower at a competitive rate of interest. Credit score is the past credit behavior of the borrower and signifies his credit worthiness. Better the credit scores, better is the chance of loan availability.

The first criteria of loan availability can not be met by all loan applicants as everyone does not own a home to pledge as security. Students, self-employed professionals, tenants and unemployeds can not avail loan against the immovable property. In order to make their loan search easier, lenders in the UK loan market offer unsecured loans or the loan without any security. These loans do not demand any valuable against the loan amount and offer a risk free borrowing option. But the borrower has to pay a comparatively higher rate of interest and the repayment pattern is squeezed between 1-10 years. As these loans are without any security, there is no risk like repossession.

Unsecured personal loans can be available for any purpose until the reason of borrowing is correct according to the law of the land. It signifies that, no lender will offer you these loans for any illegal activities. Be it home renovation, holidaying, debt consolidation or paying credit card bills, these loans suit the purpose ideally. The amount one can borrow for these reasons has a maximum limit of 25,000 pounds.

The availability of unsecured personal loans has been made easier due to the advent of online applications. Now, the borrower can access scores of loan plans and lenders online. Usually the loan quotes are free from obligations and the borrower can fill them within few minutes. As soon as the loan applicant fills the application form, the loan processing starts. Definitely good credit borrowers get these loans at a borrower friendly term, but bad credit applicants can also avail these loans at a competitive rate of interest if they make proper online research.