subject: You Need Consider Only Remortgages And Secured Loans [print this page] There are all sorts of loans, and just as many people who need to borrow in the shape of some loan or the other..Loans can be for both personal and commercial purposes and are mainly of two sorts which are secured and unsecured loans.
Unsecured loans are as it states on the tin unsecured ones needing no security.
Private people can apply for unsecured loans, but when it is business applicants for business purposes, no lender will grant an unsecured loan
If some one needs a loan, and especially if it is a large loan to expand his business, he will have a problem achieving these expansion plans if he does not own the actual building out of which the business operates, as lenders are only prepared to consider secured loans, which is different from private individuals who can get unsecured loans
If buying a business, a deposit of normally at least 30% must be offered to enable the lender to believe that the persons heart , soul and dedication will be there 100%.
It is much easier to stop making payments to a loan if it is unsecured loans, and it is for this reason that the under writing for unsecured loans is strict
Unsecured loans can be used to pay for a holiday, to do home improvements and so on, but the lender always wants proof about what the loan is being used for.
For example when wanting an unsecured loan for home improvements, the borrower will need to supply several estimates.
If someone owns his home there is no need for estimates for home improvements or proof for the use for any purpose of they opt for a remortgage or a secured loan that are low interest homeowner loans that can be used for most things.
by: Brenda Duthie
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