| There are two types of loans in the UK | | | | collateral. Also, unsecured personal loans |
| financial market these days: secured personal | | | | can be availed without as much hassle as |
| loans and unsecured personal loans. Secured | | | | secured personal loans. The relatively less |
| personal loans require collateral from the | | | | documentation involved in these loans |
| borrower's side in order to be availed. | | | | facilitates quicker approval of this loan |
| Unsecured loans can be availed without the | | | | type. |
| need for the borrower to put any collateral | | | | |
| in place. | | | | Personal loans can be availed from a variety |
| | | | of sources, like traditional banks, building |
| Loans can meet a lot of urgent needs, like | | | | societies, private lenders and online |
| funding a vacation; paying off medical bills | | | | lenders. Banks and building societies have |
| and educational fees; improving a home, | | | | been in the market since long. However, |
| consolidation debts etc. | | | | recently there has been a surge of private |
| | | | and online lenders in the UK financial |
| Personal loans can be used as per the | | | | market. |
| borrower's discretion with, of course, the | | | | |
| usage having to be lawful. Secured personal | | | | Online lenders provide far greater expediency |
| loans have the advantage of a bigger | | | | and convenience than other forms of lending. |
| borrowable amount and lesser interest rate. | | | | The greatest benefit with this loan type is |
| There is one disadvantage though. In case of | | | | that these loans can be availed from the |
| a repayment failure, the collateral can be | | | | comfort of one's home. |
| seized by the borrower. | | | | |
| | | | Borrowers should borrow loans with discretion |
| Unsecured personal loans come with their own | | | | as there are a lot of loan sharks (unlicensed |
| set of disadvantages. One of the more | | | | lenders) available in the market. Proper |
| important ones is the lack of collateral | | | | comparison analysis of the many loans |
| presence. Should there be any default from | | | | available in the market often generates the |
| the borrower's side, he does not lose any | | | | best deals. |