subject: How Healthy Is An Unsecure Loan In The Long Run [print this page] It is a tricky question to begin withIt is a tricky question to begin with. Honestly, it can lead both ways depending upon your actual financial status. The actual problem starts when you take a loan while ignoring the fact that it may manifest into something troublesome, if you fail to pay it back. If at all you decide to opt for an unsecure loan, make sure you sign a loan agreement form that protects your interests best.
What is an unsecure loan agreement
Unlike a secure loan agreement form, an unsecure loan pact does not require the borrower to pledge any assets against the loan. Nevertheless, it is not a simple loan agreement in many aspects. Since the lender is put at a higher risk, he is has the authority to charge a higher interest rate and also limit the maximum loan amount. This type of agreement is suitable for individual borrowing or small businesses. Per the Irish law, the 'Consumer Credit Act 1995' underlines rules for various kinds of simple loan agreements or credit contracts however, no direct provisions are present to support cases of unsecure loan contracts.
When is it really 'secure' to get one
If you believe you are not jeopardizing your assets since there is no written record, think again. If you fail to pay your debt under an unsecure loan pact, the lender can very much claim his money through legal means- which might land you in a new series of distress.
For an amount that you can easily payoff quickly, an unsecure loan is the best option
Unsecure loan is suited for speedy financial needs, starting a small business, any kind of insurance payments etc
In the case of an unsecure loan contract, your credit score plays a very important role
It is not advisable to opt for such a contract if heavy borrowing is involved
If you end up in debt, you credit score can drop substantially
At Net Lawman, we show you how to make a rescue plan that works best with unsecure loans
The unsecure loan agreement documented by Net Lawman details a number of variables that can assist you in settling the agreement to strongly favor one side without reducing the precision of the agreement. This document includes provisions for interest at a monthly rate depending on the base rate from time to time of the Bank of Ireland. Repayment of the loan and interest is on a monthly basis and is negotiable per your needs. This agreement is drawn to allow loan and interest payment within a specified time or, at any time by giving notice in writing to the lender, or by paying a specified number of months interest.
Application and features of this document
Includes alternative draw down arrangements and provision of information to the lender
Tailored to cater particular needs of either or both parties
Include comprehensive provisions to consult and choose from
Written in plain English
Contents of this document
Structure of the loan
Alternative draw down arrangements
Provisions of information to lender
Repayment and interest payment arrangements
Method of payment
Provision for default situations
Borrower's warranties
Other legal provision to protect borrowers' interests
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