Security with an Unsecured Loan
Want and unsecured loan UK company?
Even if individuals who need a loan have no form of collateral - like a house or stocks and bonds - they can still apply for an unsecured loan provided of course they meet certain terms and conditions. What are some of the factors that could prevent an unsecured loan UK application from being approved?
- Not working for at least 16 hours a week
- Being under the age of 18 or over 65
- Borrowing an amount under £1,000.00 or over £20,000.00
- Being involved in a debt management programme
- Being bankrupt
Other factors might stand in the way of getting an unsecured loan in the UK approved, but the parameters listed above are generally what lending institutions watch out for. Note, for instance, that some banks will lend a minimum of £5,000.00 while still others may demonstrate some degree of flexibility by lowering the minimum to £1,000.00.
Not having any type of security to offer for a loan is only of secondary importance to bankers if the loan is less than £25,000; this is why it is called an unsecured loan. They are not necessarily concerned about whether or not borrowers have equity against the loan; in fact it is a fairly common type of loan that loan companies are only too happy to offer provided the minimum requirements are met. While the loan application procedure varies somewhat from one lender to another, the process is fairly straightforward.
When applying to an unsecured loan company, one thing to bear in mind is that the lender is authorised by the FSA, the UK's financial watchdog. The last thing borrowers should do is apply to a company that is not FSA-registered. These would be otherwise known as loan sharks
Applying for an unsecured loan is not as complicated as one might think. True, there's something rather intimidating about bankers in navy blue suits and stiff, non-crease ties but all that is a thing of the past. Good lenders work with tangibles, and don't rely on instinct alone to judge individuals on their credit worthiness.
Unsecured loans generally fall under the category of personal loans, which can be either secured (some form of collateral is provided by the borrower, in which case a lower interest rate may be applicable); or it can be unsecured, which means there is no need to offer any type of security against the loan. Borrowers of unsecured loans are under no obligation to put their houses up as collateral.
The going rates for unsecured loans these days vary for lender to lender and range from an APR (annual percentage rate) of 5.9% upwards. Of course the rate you get depends on your circumstance and the amount you borrow.
Amounts for unsecured loans may be from £1,000 up to a maximum of £25,000. The repayment period is usually five years and borrowers have the option to repay the loan before the term expires although they may be subject to penalty fees for early repayment.
Depending on the lenders assessment of a borrower's personal circumstances, payment protection insurance may be required for the unsecured loan. This is usually a request made at the lenders discretion based on an individual's credit report. An applicant can expect to wait between 24 and 48 hours before receiving notification of approval or otherwise of an application.
There are specialist loan companies as well as banks that can arrange an unsecured loan on behalf of borrowers. In such a competitive market it can often be confusing trying to sift through all the different offers but www.moneyeverything.com makes this process simple. All the best loan offers from reputable lenders have been compiled in easy to understand comparison charts taking the hard work out of finding a loan to suit you.