An unsecured personal loan tends to be more straightforward than other forms of finance. As the loan is unsecured, it does not require you to put an asset (such as your home) down as collateral against the loan.
Personal loans are offered by the majority of banks and other lenders, and you can typically expect to borrow between £1,000 and £25,000over a relatively short period of time (in comparison to a secured loan).
Advantages of personal loans
Flexibility – unsecured personal loans offer the flexibility to choose how long you have to repay them, with most borrowers making fixed repayments for between one and five years.
Payment holidays – Some personal loans offer the option of a payment holiday of two to three months at the start of the agreement.
Low cost – Unsecured personal loans can be a cheap and easy way to get your hands on the cash you need depending on your personal circumstances.
Am I eligible for an unsecured personal loan?
As a general rule, whilst you don’t have to be a homeowner to apply, unsecured personal loan lenders will only consider applications from borrowers who have at least fair credit score. Additionally, most lenders will require that:
- You are in paid employment
- Be over the age of 18
- Not currently be in full time education