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Redesign Your Financial Fate With Personal Loans
By: Aisha
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Till a few years back 'loan' was an abhorred term, but not now as nowadays the very word loan is not seen with the point of view as it was used to be seen till few years back. Today the very concept of loans is considered to be a blessing in disguise for the needy. Today every kind of loans is available at a very reasonable rate, thanks to the cut-throat competition among the money-lending authorities across the world. But among all these loans, personal loans are the kind of loans that have caught the imagination of the people. Yes, these loans which are available under two categories namely the secured personal loans and the unsecured personal loans.
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As the name itself suggests, these are the loans that are mainly availed for the personal causes. But still these loans can also be availed for any other causes other than the personal ones. The main USP of these personal loans is that these loans can be availed at a very short notice. To get these loans a borrower needs to follow certain guidelines. First, the loan-applicant of these loans should have a regular source of income ie he/she should be in a permanent job for the last six months. Second, the borrower must have an active bank account. This is to be done so that smooth flow of all the transactions. Third, the loan applicant must be over the age of 18 at the time when he/she is applying for the personal loans.
Now first talking about the secured personal loans. These types of loans are called secured because the lenders of these loans require any asset of the loan applicant to be pledged as a security with them. This is done so that the amount of money lent could be recovered in case of any default in the process of repayment. The rate of interest on these loans is very reasonable, which is why most of the people opt for this version of it.
The other type of personal loan is the unsecured personal loans. The main highlight of these loans is that no kind of tedious documentation is required and also to avail these loans the borrower does not require to put any of his personal asset as security with the lender. Thus it is ideally suited for the likes of the tenants and for the people who are suffering from the bad credit rating.
Not very long ago, the amount that was available on these personal loans used to be 125 % of the total value of the equity. However when UK market faced the untoward condition of the credit crunch, the percentage of this value came as down as the 60-80 % of the value of the equity. Borrowers who have a clear past credit record are eligible for getting around 80 % of the total value of the equity. While those who fall into the category otherwise are eligible for getting only 60 % of the total value of the equity.
Thus personal loans are the most genuine kind of loans that have got the maximum transparency among all kinds of loans that are available in the market. |