Loan Comparison - Unsecured Loan

What are the pros and cons of an unsecured loan?

• One can get unsecured loan without providing any mortgage or collateral. In case of payment default or inability to pay by borrow, the lender cannot take your fixed assets like house, car , etc
• Control or You can Choose Repayment Tenure – there are options to choose about how long you can select to repay the loan.
• Fixed EMI – as interest rates and tenures are generally fixed, you'll know what you need to pay back every month on a particular date for the tenure/period of the loan, which helps in monthly budgeting.
• Common Product– it is being offered by all leading financial lenders and the application process is fast, easy and online.

Disadvantages:

• Requires a good credit history – as there’s no collateral, the bank needs to minimise its risk.
• Interest rates can be high – to off-set the risks, banks tend to charge more for unsecured loans.
• Lenders have minimum loans – most banks won’t lend less than £1,000 or for less than a year, so it may not be suitable if you’re looking to borrow a small amount.
  
  
• Early repayment charges – if you repay the loan early, you’ll probably have to pay a penalty.