The classification of personal loans

These loans are further classified into secured and unsecured loans according to their nature. The loans that are secured against any assets are called secured loans. It provides interest rates starting from 6.7%. Also there exist multiple choices in repayments and interest plans. According to the data available from the Bank of England, secured loans are becoming more popular these days with the secured borrowing reaching £ 14.5 billion in the last three months of 2006. Unsecured loans are usually preferred by those who do not have any collateral. It is known for providing competitive interest rates. Also it has fast approving and accessing process.

A couple of facts on personal loans

The numbers of women preferring personal loans are much higher than men.
Unsecured loans above £ 20 billion are owed by women.
Male customers’ outcome female in grabbing personal loans to own cars.

Availability and the uses of personal loans

Personal loans can be made available from £ 500 to £ 250,000, and can be repaid between the time limits of 12 months to25 years. As is possible to take at any time, personal loans are the most convenient method of raising money. It is useful in purchase of cars to home improvement to holidaying.

Classification on the basis of repayment

Personal loans are again classified on the basis of their repayment into three types, instalment, balloon and single payment loans. Installment repayment loans are repaid through monthly instalments, while balloon loans are those repaid at regular intervals. In the case of single repayment loans, the entire amount along with the interest is paid at the end of the loan period.

Home Loan, for many, is the loan availed for the purchase or construction of a new home. But, in reality, home loans are available for virtually everything from construction and renovation to extension, land purchase, and even the stamp duty. The different types of home loans issued by banks in India are described below.

Home Purchase Loan: This is the conventional home loan that we all know. It is meant for the purchase of a new apartment.

Home Extension Loan: This home loan is for funding any alteration to an existing home. For approval of this loan, however, one might have to get the approval from the concerned municipal authorities.

Home Construction Loan: Do not confuse it with Home Purchase Loans. This is for the construction of a new home on an existing property. Its terms and conditions are also widely different from Home Purchase Loans.

Land Purchase Loans: This is for funding the purchase of land for investment/construction purposes. One of the most availed type of loan scheme.

Stamp Duty Loan: For paying the stamp duty.

Bridge Loans: This type of loan is availed by those who wish to sell their present home and buy a new one somewhere else. The loan amount is used to purchase the new home while the old home waits for its new owner.

Other types of home loans are Refinance Loans, Home Conversion Loans, NRI Home Loans, and Balance Transfer Loans. For more info on home loans, visit the home websites of major banks in India.

Unsecured loans do not require any collateral. Unsecured loans, as the name suggests is virtually secured on nothing at all. Unsecured loans are sanctioned on the basis of your credit history and your repayment potential. These loans are not easy to obtain because of collateral’s absence. Lenders have nothing to recover in case a borrower’s default in his repayments. To compensate this insecurity, unsecured loans come with higher rate of interest.

The typical APR of unsecured loans ranges from 7% to 30% .Although unsecured loans are not as popular as secured loans, it has many benefits. Unsecured loans do not require any collateral, it is ideal for non home owners. Those home owners who feel unsecured in placing their property as collateral can avail unsecured loans to fulfil their requirements. Unsecured loans are quicker to obtain because of no property evaluation, it is ideal for those who want a loan urgently.

The interest rate of unsecured loans is fixed, so it is easy to repay as you know how much you have to keep aside to repay the loan. Unsecured loans are short term loans. Repayment period of unsecured loans varies from six months to ten years. If a lender finds a borrower with good credit score and repayment capacity, lender can offer low rate of interest.

Unsecured loans are provided even to those who are on income supports or pension holders. People who do not have enough income to meet their basic needs and are over 60 years of age can also apply for unsecured loans. Unsecured loans can be used for various reasons like for buying a luxury car, debt consolidation, home improvements etc.So, use unsecured loans as per your requirement without even offering any collateral.

Cash loans are short term loans of smaller amounts. There are three types of cash loans, they are cheque loans, deferred deposit cheque loan, and cash advance loan or the payday loans. These loans are offered to you at interest rates that starts from 6.1%APR for £1,000 to £25,000.

How to get cash loans?

In order to get cash loans you must submit your current bank account number with cheque and the proof of employment to the lender. These loans are offered even to bad credit holders, but having good credits may allow the borrower to get loans at lower interest rates. Cash loans are short term loans and are often offered at higher interest rates. Cash loans are paid on the next payday. Cash loans are unsecured loans offered without taking any property as collateral but can also can be availed keeping security.

Procedures involved in getting cash loans

In order to get cash loans you have to deposit post-dated cheques to the lender. The amount in the cheque includes total amount borrowed plus interest and it is automatically deducted from your account as the payday arrives. Before getting the cash loans you should agree to the amount of loans and interest rates. After it, the amount is directly deposited in your account and after the payday the amount is withdrawn automatically. Cash loans can also be renewed on the subsequent payday. These loans are provided at relatively higher interest rates and must be repaid within a shorter repayment period.

What are the other fast cash loans available?

Your emergency cash requirements can be met with other cash loans such as cash advance store and checks cashing services but these are given at a higher interest rate. There are other types of cash loans namely ‘little loans’ and ‘pawnshop’ where you are required to pledge your car and jewelry respectively as a security.

Online cash loans

If you are tired of the paper works and want instant cash loans then these online cash loans can help you a lot. It is the fastest way of getting cash loans and requires only your contact and bank account details. Once approved, the amount will be deposited in the account.

Do you have question in your mind like why to choose personal loans? Well, the answer is quite simple i.e., the flexibility associated with it. There are mainly two types of personal loans i.e., secured and unsecured. If you are a homeowner, you can go for Secured Personal Loans. On the other hand, if you are a tenant, then unsecured personal loans are for you.

Personal loans with all the flexibility can be used for many purposes like buying a new car, debt consolidation, for higher education, home improvements, holidays and lot more. As such type of loan opens the gate for both i.e., for a homeowner as well as for tenants, it’s most popular loan in the UK market.

Secured Personal loans: It is simply a personal loan where loan is secured against collateral. Secured loans are best suitable when you have any of the situations like

• Looking for large loan amount
• Difficulty in getting unsecured loans
• Having a bad credit history
• Loans at low rate of interest
• Longer repayment periods

Unsecured personal loan: For tenants, Unsecured Personal Loans are a boon. Unsecured personal loans are not taken against collateral. Lenders are at risk for such type of loan. Lenders have no claim on borrower’s property. But in case, borrowers do not repay the loan amount on time, lenders may take legal action against them.

Unsecured personal loans come at high rate of interest as compared to secured personal loans. Repayment periods are also shorter.

Consolidation loans are like your friend. As a friend in need is a friend indeed, in the same way,consolidation loans are your best friend when you suffer from debt burden. There are so many loans offered by lenders but for debt management, consolidation loans are the best option.

If your debt is going beyond your control and there is no relief then,consolidation loans can help you release your entire debt burden. Consolidation loans consolidate all your present debt like credit card bills, store cards, car repayments, etc., into one easy loan that can be managed comfortably with low rate of interest.

Debt consolidation loans are one of the best ways of taking a new loan to pay off a number of debts. People are going for debt consolidation loans to consolidate debts at lower rate of interest and for the simplicity of a single loan.

Consolidation loans can be either secured or unsecured type. Secured debt consolidation loans are for home owners. Such loans are obtained against the collateral. Before signing a deal, factors like repayment terms, interest rates, other loan offers by the lenders and the credit situations should be considered.

Unsecured debt consolidation loans are suitable for tenants. Such loans are obtained without pledging your property as collateral. Unsecured loans are offered by the lenders at high rate of interest as compared to secured debt consolidation loans. But minimum risk and fast approval of loans are the positive points that can justify your choice.

Borrowing money from a creditor on your house or property is more like borrowing Cheap Secured Loan. Secured loans at a reasonable rate can act as a great means to raise large capital.

Cheap Secured Loans are more practical if you own a house with a sound source of income. Here, your collateral serves as a security to the creditor and your stable income is an assurance of the repayment. This is an ideal situation to avail cheap secured loans from your creditor.

Cheap Secured Loans usually have longer period of repayment and no obligation quotation. You may obtain a secured loan towards meeting your personal requirements. Cheap Secured Loans are a good option for purchasing cars or for carrying out some of your home improvement plans. You can obtain loans for these purposes as Secured Personal Loans, Secured Personal Car Loans, Secured Personal Home Improvement Loans.

Cheap Secured Loans can also be availed by the businessmen to enter into the new business, or to start a small business or even to reinforce their existing business. If you are one among them you can obtain Cheap Secured Business Loans to meet your business requirements.

If you have a bad credit history because of CCJ, Default or Arrears but you own a house, Secured Loans can be a wise loan option for you. In such circumstances, the creditor may ask for a little higher rate of interest.

People need loans at once when their money need is urgent. And, if you have too many things involved in the processing like, having a property to be pledged and having that valued too, it takes too much time and in the mean time, your need may become a crisis. So, to save you from all these odds, fast unsecured loans have come up with their unique offers of fast loans without collateral.

Fast unsecured loans are the loans which do not require you to pledge any of your assets before the lender to have the loans. Here the risk is with the lender. And, fast unsecured loans are available for a term ranging from 6 months to 10 years while these loans are available for an amount figuring between £ 1000 and £ 25000. However, the fast unsecured loans require you to pay slightly higher rate of interest because these are available for shorter term than the secured loans to suit your urgent needs. Moreover, fast unsecured loans are open for all. The bad credit holders are also welcome to have these loans.

Fast unsecured loans can be used for any purpose. You may use it for debt consolidation, for business updating, may want it to buy a new car or for anything else. Whatever your need is, the fast unsecured loans come to serve as fast as possible.

But, why fast unsecured loans are termed as fast? These unsecured loans are fast moving because there is no question of collateral attachment in these fast unsecured loans. Collateral attachment generally seeks valuation of your property to be pledged which takes time. The lenders of fast unsecured loans firmly believe in the dictum “time is money” and therefore introduced the fast unsecured loans also online where it is really fast in service with cheap rates of interest as well. Online, the application process has been streamlined to suit borrower’s needs as soon as possible.