Unsecured personal loans

Category: Loans
Date: 6/20/2008

What is an Unsecured Personal Loan?

An unsecured personal loan is a way of borrowing a lump sum of money from a bank, building society or other lender. You don't need to put up your property as security for the loan. You can use the money for whatever you want (but not for commercial purposes). Unsecured loans are commonly used for buying cars or to fund home improvements.

You can choose the length of time you want to repay the loan over. The minimum period is usually 1 year, and the maximum is generally between 5 and 7 years, although some loan lenders allow longer than this. You need to meet a regular monthly repayment throughout this time.

Who is an Unsecured Personal Loan suitable for?

Is there an expense that needs to be taken care of right now, but you just don't have the cash available? If this is the case, you may want to consider an Unsecured Personal Loan.

Our partner Gateway2Finance can arrange unsecured personal loans for almost any purpose for both Homeowners and Tenants.

Gateway2Finance provide you with:

• Loan options to borrow from £500 to £25,000
• An easy online application process
• On-line and 'real time' case tracking
• Decision in 40 seconds
• A Range of Other Alternatives if your application is rejected by the initial lender

No arrangement or set up fees

Personal loans can be used for anything from school expenses to home improvements to medical expenses. By providing your personal information we will be able to match you with a lender who can provide a loan that will allow you to pay for what is needed right now.

What should you look out for?

Unsecured personal loans are fairly straightforward, but there are a number of catches and things you need to understand before you commit yourself. These include:

1) A lender may advertise a loan with deferred repayments. This means that you don't make any repayments for a few months at the start of the loan. However, interest is still stacking up and your future repayments will be larger to as a result. Your total amount repayable will be larger too. The same applies to loans with 'payment breaks' during the loan term.

2) You can get funds sent to your bank account on the same day as applying. You'll have to pay a fee for the privilege, so ask yourself do I really need it today?

What to do next

If an unsecured personal loan isn't for you, read our guide about Secured Personal Loans

Find the best personal loan rates and deals on offer - Compare Loans