SECURED AND UNSECURED LOANS

Unsecured loans enable you to borrow money without offering any security in return to the This involves a greater degree of risk for the lender. With unsecured loans, if you fail to keep up the repayments, the lender cannot simply repossess your property to recover their money. Therefore, this might also seem to involve less risk for you. However, it is important to remember that, although you haven't offered any security, you are still liable to repay the loan. If you fail to keep up the repayments, the lender can still take steps to recover their money from you, though for unsecured loans it is a more difficult and involved process. Unsecured loans are usually more expensive than those where no security is offered. However, they can be very useful in situations where it is inconvenient, too costly or impossible to arrange secured loans, such as: purchases of small value ,you rent your property ,the value of the property you own does not exceed the value of your mortgage ,Lenders will offer unsecured loans to people who they think are low risk. The types of factors they take into account include whether the borrower:, has a good credit history ,has lived at the same address for a long time ,is in a secure job is known to the bank (e.g.: an existing customer)