Unsecured Loans: Option Open for Non-homeowners

Unsecured Loans: Option Open for Non-homeowners

Lending and borrowing are parts of the financial market. The lenders on behalf of lending agencies like banks and financial institutions offer loans of several varieties. People borrow as they cannot manage with what they earn. The financial market has classified the loans, mainly, in two categories: secured and unsecured.

People can apply for secured loans if they have valuable possessions. The lenders ask the borrowers to provide valuable assets to be used as collateral, and secured loans are advanced against this security. A home, a piece of land, a vehicle, valuable investments etc are considered as valuable possessions.

It is clear from the above that secured loans are not available to non-homeowners, tenants and to many others. Unsecured loans are important for this reason. People who apply for unsecured loans do not require offering anything as security. Homeowners can also apply for unsecured loans.

People can borrow an amount between 500 and 25,000. The lenders study the financial status of the applicant and assess his repayment capacity before deciding the amount of loan may be granted. The lenders want that the loan amount must be cleared within 1 to 10 years. Interest rates for unsecured loans are higher than those for secured loans.

The loan-seekers are required to be qualified for unsecured loans. They must fulfill the following conditions for this purpose:

1. They must be citizens of United Kingdom. 2. They must be at least 18 years of age. This is necessary as persons below 18 years of age are not legally allowed to be a party to any financial contract. 3. The lenders, after approval of the loan application, send the loan amount to the respective bank account of the loan-seekers. Hence, it is a must that the applicants have checking account. 4. The applicants must be employed in any officially authorized office or plant at least for six months. 5. They must earn as low as 1000 in every month.

It is possible to submit application offline and online. It is, still, better to apply online. The applicants should go through the terms and condition of unsecured loans minutely, before they submit their application. They can find favorable quotes at reasonable rates of interest if they study the websites in which the lenders provide detailed information about unsecured loans.

POST COMMENT

Buying Your Second Home All About Paintball Markers Renovate Your Bathroom with Quadrant Shower Enclosure How To Get Smooth Skin At Home Male Impotence Cure and Perfect Home Remedies for Male Impotence How To Treat Puffy Eyes At Home Article Writing – A Way of Earning Money From Home Planning an Outdoor Party in Opens of a Barbeque Venue Combating Dust at Home Flats Inverness How to Tell the Redwood Furniture 10 rules For Estate Costume diamond jewelry Shopping Keep your home secure by utilising security products