Page 1

Unsecured loans – the best way out Unsecured loans are basically small loans that have no specific time of application and reception. You can get at any time you require the loan. Unsecured loans fall in the same category as payday loans which are both short term loans. You do not need to have a good credit score for you to apply and get approved of unsecured loans. These loans are paid in monthly installments at an agreed interest rates. In some cases, a guarantor will be required in order to ensure that the loan is paid in case of any default. The interest rates and amount lent will vary from one lender to another. Unsecured loans are not tagged to any of the borrower’s assets such as a car, home or personal property. The assessment of your eligibility will vary from lender to lender. The lender will also determine whether you are eligible for an unsecured or secured loan depending on your requirements. All these are dependent on your credit score, your personal and financial profile and the financial institution’s loan policies. Here are some of the frequently questions about unsecured loans. Can one face any legal action in case of a default?

Yes. Like any other loan out there, unsecured loans are very much legal even if they lack guarantor or any physical asset tagged to them. So in case you decide to default your payment you will face legal actions. You are therefore required to


abide by the terms and conditions of the loan agreement as you can not only be sure but also serve a jail sentences for the same. What is the main pro and con of unsecured loans? The main advantage of these loans that they are the easiest way to get huge sums of money. The approval and disbursement of the loan amount is fast and may depend on the lender. The lenders always ask very little information, on top of that, the period of payment is so friendly and flexible and ranges between one year to about five years. They do not come with prepayment penalties and most of them have got a repayment break within the first months of issuance. However, the may con of unsecured loans it is very expensive in terms of the total amount paid back. You get that you they have very high interest rates. Who is more eligible for unsecured loans? Those with good credit scores are more eligible to get unsecured loans. However, this is not a critical requirement. In case of a bank, you will have to own an account with the bank in question. In addition, you should be a full resident of the area you provide and should have a secure job. Not only banks but also lenders or other financial institutions will put all those into consideration. Secured job means that the borrower will be able to make periodic payments of the loan. What is the period for the loans? Unsecured loans always have a term of not more than five years. Conclusion Sometimes you do not have an asset, so, unsecured loans are the best way to go. You may need a medical loan to pay you medical bills but cannot secure the loan against anything. Sprintloans.com.au can help you being the most reputable provider of loans Australia.

Sprint Loans www.sprintloans.com.au

Unsecured loans – the best way out  

Need unsecured loans from $100 to $1000? We are Australia's leading provider of same day loans, unsecured loans and medical loans. Apply Now...

Unsecured loans – the best way out  

Need unsecured loans from $100 to $1000? We are Australia's leading provider of same day loans, unsecured loans and medical loans. Apply Now...

Advertisement