By Paul Davies
competitive personal loans online available from our leading lenders. With so many loans and loan companies to choose from it makes sense to carefully consider your options.
Depending on your circumstances and whether or not you are a homeowner, you have a choice of two main categories of personal loans online â€“ secured personal loans and unsecured personal loans. Secured loans require the borrower to provide the lender with some form of collateral, in this case your home. When the equity in your home is used to secure the loan, the lender is taking a fairly low risk lending you money and the result is lower interest rates. The risk for you and your home is that if you should fall into difficulties and default on your repayments you will eventually have your home repossessed. It is vital that you make sure that you can comfortably afford the repayments on personal loans online before committing to a loan agreement. An option here is loan repayment protection, which can help you over a period when you are unable to meet your repayments. This however is an additional monthly cost. Secured loans make it possible for people who are self-employed and have an adverse or no credit history to get a loan.
In the case of unsecured loans, the lender grants the loan without securities from the borrower. Because the lending company is taking on a greater perceived risk, interest rates are higher for unsecured personal loans online. The borrowerâ€™s credit history is also more important here since the lender needs to assess their ability to pay back the loan. Although unsecured loans take longer to get approved, they are generally processed much faster.