Unsecured personal loans refer to loans, which you can receive without having to put up your personal property or assets as collateral. Such loans may come in handy in many cases, mostly to those who do not own any relevant collateral to put up, or simply do not wish to do so. There are many questions surrounding the whole idea of unsecured personal loans. Some of the main ones have been tackled below.
Frequently asked questions
What is entailed in the application process of unsecured personal loans?
The process involved is made to be as simple as possible. It does not involve all the tedious, boring, and frustrating paper work as with other loan types. Lenders like First Quality Finance can help you meet your urgent need for money. However, each lender might have a few different requirements, but the basics are usually financial information about you. There are even websites, which you can use to apply for the unsecured loans, right from the comfort of your home.
Who can access the loan?
Unsecured loans are available to nearly anyone who is of age and can repay the loan. Irrespective of whether you are a homeowner, a tenant, or if you have any collateral to put. As long as you have the ability to repay the loan within the stipulated time, you do qualify for the loan.
What are the interest rates that I have to pay?
The interest rates will always vary depending on the lender that you choose as well as your credit rating. The rates will typically be a little higher compared to those of secured loans. However, this makes perfect sense given all the benefits and convenience that come with the unsecured loans such as not be risking your property.
How long does it take to receive the money?
The time taken for the loan to be processed will vary from one lender to the other. Some lenders can get you the money in less than a day. The quick completion is enabled by the fact that there is no collateral to evaluate, cutting down the required processing time significantly.
What can I use an unsecured loan for?
When it comes to the purpose of usage, unsecured loans offer great flexibility. You can use it for quite a variety of purposes such as making home improvements, funding a wedding, going for a holiday, debt consolidation, health care or in any way you want.