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Personal loans in the ukAre you in need of cash and looking for a loan? Well if we would have spoken about person loans in the UK a few decades ago then I couldn;t have listed much options but with changing times it has become easy for the consumers not to apply for these loans but with the increase in the number of lenders these loans can also be obtained at competitive rates that are even lower than what it was a few years ago . Personal loan is one of the most common ways in which you can borrow money to meet with financial difficulties . Every year there are thousands of people who apply for these loans for a number of reasons varying from debt consolidation to meeting medical emergencies like hospital bills etc. What is the term on these loans?The personal loans in UK can be taken for a period varying from 1-5 years being paid part by part on a monthly basis. With these loans you can borrow an amount ranging from 1,000 and 25,000 .
As per the well-known fact the more the amount that is borrowed the lower is the interest rate on the loan . For e.g.: if you borrow £25,000 for a period of five years then you can qualify for rates lower than 6%. However, with a lower amount somewhere around £15,000 for the same period of time you might have to pay more than 6.5% because the lenders find it difficult to arrange for smaller amount of loan for a longer period .
When you take these loans it is advised that you consider the option of payment protection insurance . This feature helps you meet payments in adverse cases like you are unemployed for sometime or have met with an accident. But keep in mind that if you opt for this option then the cost of the loan would increase and there are a number of terms involved that need a good understanding of the finances . Options with these loansAs mentioned personal loans are one of the best options available to people for borrowing money. These loans are also flexible in giving two options to their clients. You can either opt to take a secured or an unsecured personal loan depending on your financial circumstances . Let us see both these types and the advantages offered by each of them.
Secured personal loans: These loans are given against a security usually a real estate property or any other form of fixed asset . Though this type offers a risk to the asset but on the same hand you can also enjoy lower rates and flexible terms of payment . Besides this the loan amount available with these loans is also more as compared to the unsecured loans At times depending on the value of the collateral the lender can offer as much as £100,000 but you would have to put the title of the collateral on risk .
With this loan you have to be careful with the payments. In case you are unable to meet the payment on time you would have to lose the collateral and if you wish to pay off the loan early than the prescribed time you would be charged a penalty .
The payment of these loans varies from 3-25 years depending on the amount that you have borrowed.
Unsecured personal loans: These loans do not require pledging of any asset and hence carry interests higher than those on the secured loans. The term of repayment usually varies from 3-5 years . With these loans people usually prefer to have fixed interest rates so that they know the amount that they would have to put in every month towards the monthly payments .
Whatever be the option that you select make sure that you take your decision after comparing the rates and terms from different lenders. Qualifying for these loansAs mentioned these loans are easy to qualify for. These days the lenders have relaxed the credit criteria so that these loans can be made available to a number of people . This means that even people with bad credit are applicable for these loans.
When you apply for these loans the lender usually looks for your job stability and your monthly income . Lenders are concerned about getting back their money hence the basic concern is about the income . If you have good credit then it can act as a bonus and you can qualify for lower interest rates or higher amount of money .
If you are taking a secured personal loan then the lender considers the value of your collateral and hence decides your interest rate and amount that you can borrow. Applying for these loansApplying for the personal loans in the UK has become a lot more easier with the applications being made available online . You can apply for the loan also by visiting the lenders office . Make sure that you carry along all the necessary documents like your bank statements, salary stubs, details about asset, other debts that you have etc .
There are a number of lenders these days and applying for the personal loan is not a problem. Some of these lenders are mentioned below.
UK Personal Loans Ltd.:
With them you can borrow £5,000 to£100,000 from 5-25 years for any purpose. Rates can vary from 7.9% variable to 19.9% variable. Contact them at Glenbrook House, 11 Molesey Road, Hersham, Walton-on-Thames, SURREY KT12 4RJ . Tel: 01932 229 168; Fax: 01932 254 613; Email: info@ukpl.com
UK personal Loans.com:
They offer both secured and unsecured personal loans varying from 7.7% APR to 18.3% APR. You can fill out their online application or contact form today to get more details.
Northern Rock:
With them you can borrow unsecured personal loan at 10.9% typical variable APR and secured at 8 .84%. You can contact them at 0845 608 0405 to get more details about their personal loans .
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