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