As the name suggests, these advances are cheaper as compared to the existing plans in the market
. Low interest personal loans are those which are granted to the people who cannot afford the high loan rates.
In Simply language, this means that the borrower can apply for credit without placing any security against the credit amount. The lender is at a risk while granting such advances as he grants the advance without any collateral.
The finances are lent at a lower rate as compared to the present market rate. The borrower has to scout for such deals on the internet. He must choose the lender who offers a deal that suits his pocket the best. The internet enables the borrower to compare the rates charged by the different lending institutes.
The amount sanctioned for low interest personal loans ranges from 1000 to 25000 for a period of 1- 10 years. The period can also be extended, but the lender must be intimated about this before hand. The borrower will be charged an additional fee every time he extends the period.
The application procedure is faster as compared to the secured form of credit as it does not include valuation of property since you are not placing any. You can apply for these advances even if you have a poor credit. You need to prove your repaying ability to the lender, to assure him of your credit worthiness.
The eligibility criteria have to be met in order to apply for such advances. They are as follows;
1.The borrower must be a citizen of UK.
2.He should be above the age of 18.
3.He should have a valid and active bank account in UK.
4.The applicant must have a steady job and should have a regular source of income.
5.His monthly earning must be over 1000 per month.