Not everyone is super-rich and has a super-secure life. Most people go through life having experienced a financial crisis. Personal loans come as a blessing for such people. Taking a loan during a financial crisis is like having a backup oxygen tank when your air runs out while you’re scuba diving. Secured personal loan is very common. However it is not really secure from the borrower’s perspective. To get a secured personal loan, you have to offer an asset of equivalent value as surety. It’s like if you can’t make it out of the water with the backup tank; you get eaten away by sharks. Not everyone has the confidence to put their remaining valuables at stake. So, how do you take a personal loan without offering an asset as security? Unsecured loan is the answer.

What is an unsecured loan?

It is not possible for everyone to offer their valuables as a surety for loan. But at the same time these people might also be in a financial crisis. Unsecured loan is a blessing for such people. An unsecured loan is one in which you do not need to risk your valuable assets as surety. These are quick loans that one you can avail without the need of insurance. So, if you are in a financial crisis or want to realize your dreams without risking your assets, then go for unsecured loans.

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A Risk free option

Unsecured loan as opposed to the conventional secured loan is a risk free option from a borrower’s perspective. It is also a fast way to acquire a loan. Moreover, this type of loan is available to all kinds of people whether they are self-employed, tenants, non-homeowners and homeowners. Unsecured loans can be availed by displaying a good debt managing history. Since no valuable possessions get risked in the process, it is a very safe option for the borrower.

Reach for your dreams

Unsecured loans are a good and safe way to realize your dreams. With unsecured loans, you can buy a new car, renovate your home or go for a fun filled vacation. Life is short and dreams are endless. Therefore there is less room for patience. Quick loans like unsecured loans are always welcome. They help you achieve your dreams without risking anything.

How to apply for an unsecure loan

Unsecured loan is very easy to apply for. Loan seekers need to fill in their personal details in an application form provided by the lender. The lender assists in selection of the amount of cash that he or she can acquire as loan in order to realize his or her wishes. Before a loan is granted, however, the lender verifies the details provided by the applicant and also checks their debt history. A loan is granted easily in case the applicant has a history of well managed and timely paid debts.

Repaying ability of the borrower is calculated by the lenders based on their past debt performances. The amount sanctioned as unsecured loan by the lender is partially dependent on the repaying ability of the borrower. The terms and conditions of loan like amount and repayment tenure can be selected by the applicant. The repayment tenure decides the settlement contract. Repayment options include easy monthly instalment plans that are selected by the applicant or the borrower.

Compare deals before availing loan

It is always advised that you compare the best deals before applying for an unsecured loan. Unsecured loans provided by some lenders have unusually high rate of interests. Thus searching for deals with comparatively low rate of interest will prove to be fruitful.

Disadvantage of unsecured loan

Unsecured loan is the best option for people who are unsure of repayment and do not want to risk their valuable assets. It is also good for borrowers like students who generally do not have high value assets to their name. Unsecured loans come at a price, however. They have comparatively higher rate of interests than secured loans. Therefore they prove to be costlier in the long run. Therefore if you have an asset that you can use as security and are confident of repayment of debt, then you should opt for secured loans in order to save a good amount of money.

Whether you go for a secured or an unsecured loan is completely up to you. However, keep in mind that you must always weigh your options. Secured loans are bets for people with a stable income and atleast one valuable asset. For them, a secured loan is a cheaper option. But there are people who do not have much to give as surety. Neither do they have a stable income. People who fall in this category have no option but to go for unsecured loans. It is also important to keep a track record of consistent and timely payment of debt in order to get an unsecured loan.

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