Unsecured Loans are those types of loans where you do not have to risk any of your assets as a security for the debt
. A person, who applies for such finances, agrees to pay off the debt in the set period of time. These loans are very useful to pay of car loans and house loans and so on. They are also useful for debt consolidation, home improvement and many things.
These finances are only approved on the slabs of credit history and repayment ability of the person who applied for such loans. These benefits are not easy to obtain because of no security. Lenders do not have anything to recover from, in case if the borrower fails to repay them. To equalize this risk, lenders have high interest rate on these finances. And thus they are approved immediately, because collateral is not required to be placed.
Lenders see the applicant's credit history and repayment ability before approving the loan. Applicants with low credit history may be granted such finances. Even if the interest rates are high, the lenders are still at a risk. They are approved for the amount between the range of 1000 to 25000 with a set period of 1 year to 10 years.
Criteria of Eligibility:
Must be a citizen of U.K.
Must be an adult i.e. above 18 years of age.
Must be employed at a legitimate company.
Must have a minimum salary of 1000.
Must have an active bank account.
Unsecured loans can be applied online. It has a very simple application form that is required to be filled. Information that is required to be filled in the application form are, applicants name, Age and Employment status. Social security and bank account number is also required to be filled in the form. When the loan is approved the money is transferred in the borrowers account within a quick span of time.