UNSECURED
LOANS
Loans normally fall in two
categories i.e. secured loans and unsecured loans. Secured loans require you to supply some form
of collateral such as a house or car to the lender before they can give you the
funds you seek. Lenders often require a security so that in the event that you
are unable to pay your loan, they can sell off your asset and recover their
money. A secured loan tends to have
friendlier interest rates and repayment terms as the lender knows he is covered
in case of default. An unsecured loan on the other hand, refers to a credit
facility that is not secured by any asset. These types of loans are riskier for
the lender because there is no recourse or way to recover funds from you in
case you are unable to pay. As a result, unsecured loans attract a higher
interest rate and shorter repayment periods as the lender would prefer to
recover the funds as soon as possible.
Because of
their risky nature, unsecured loans tend to be for smaller amounts, usually
ranging from $250 to $10,000. The loan amount you can qualify for is determined
by how much you earn, your credit history and how much other debt you are
carrying overall. Unsecured loans are good for handling emergencies, to provide
bridging credit or to pay for other smaller projects such as house renovations
or vacations.
There are several types of unsecured loans:
Payday Loans
Payday
loans are given to salaried employees as long as they can provide proof of
employment as well as a guarantee from their employer committing to channel the
borrowers pay through the lenders account in order for recovery to be made.
Payday loans are usually given for a period of one month and are recovered as
soon as the borrowers pay is deposited into his account.
Unsecured private loans
Unsecured
private loans are available to customers who can provide proof of consistent
income and tend to have more reasonable rates than payday loans.
You can access unsecured loans in Canada via online
lenders and other private lenders as banks are unwilling to offer these
facilities due to the risk they carry. Allcreditsource has a wide
network of partners offering unsecured loans and we will work with you to find
the best lender for your particular needs.
For immediate approved loan, Apply online loan application at http://www.allcreditsource.com/Applynow.aspx
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