| Often called the most flexible loan, a personal loan | | | | • Long repayment term |
| gives the borrower a chance to utilise the loan | | | | • Low monthly instalments |
| amount for whatever purpose. Though a particular | | | | It must be kept in mind however that in the event |
| purpose has to be mentioned in the application for | | | | of your failing to pay back the loan, your collateral |
| the loan, there is no restriction as such on the use of | | | | could be sold off by the lender to recover the loan |
| the personal loan. You can utilise it for | | | | amount. |
| • Home renovation, if you are not happy with | | | | An unsecured personal loan doesn’t require |
| the present looks of your house | | | | collateral, but this very reason makes granting an |
| • Debt consolidation, if you have borrowed | | | | unsecured loan a high-risk enterprise for the lender. |
| multiple loans and are struggling to manage them | | | | He therefore is left with no other option than to |
| together | | | | charge high interest rates on the loan. The |
| • Car purchase | | | | repayment term of unsecured personal loan is also |
| • Footing your long medical bills | | | | short. These disadvantages however can be ignored |
| • Paying for the expenses of an exotic holiday, | | | | by you if you consider the facts that you run no risk |
| or | | | | in the event of non-payment and that the loan is |
| • Wedding expenses in the family | | | | disbursed very fast to you. |
| Like some other financial products, a personal loan, | | | | A personal loan can be secured by you even if you |
| too, can be secured or unsecured. | | | | have adverse credit history. Remember, however, |
| A secured personal loan [ is secured against your | | | | that the securing the loan will be easy for you if you |
| house. If you already have an outstanding mortgage | | | | offer collateral. |
| on the house, you could get a loan equal to the | | | | Go through the interest rates of the major lenders |
| equity left in your house. Secured personal loan | | | | UK before you apply for a personal loan. This helps |
| offers you the following benefits: | | | | you choose the right deal for yourself. Also, apply |
| • Easy terms and conditions | | | | online to avoid paperwork and save time. |
| • Low interest rates | | | | |