What are Unsecured Personal Loans?

An unsecured loan is another term for a personal loan. Unsecured loans can be used for any purpose, such as debt consolidation, car purchase, home improvements or going on holiday. Payday loans are a short term type of unsecured loan. The interest rate is normally fixed for the length of the loan agreement. Unsecured loans are suitable for both homeowners and tenants. You can apply here for unsecured loans.

Calculate your monthly payments using our unsecured loan calculator.

What is the difference between an unsecured loan and a secured loan?

An unsecured loan carries more risk for the lender as he has no collateral or security to protect his interest if the borrower defaults.

A secured loan uses your home as collateral or security, so the lender is confident that he will be repaid. The lender gains an interest in your property and has the right to possess it in the event of loan default.

For this reason borrowers must expect to pay higher interest rates on unsecured loans than on secured loans.

When your unsecured loan application has been approved, it is faster to obtain than a secured loan as there is no need to value your home.


 
 



 
 
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