Personal Loans

 An unsecured loan is a loan that is not backed by collateral, only your signature (signature loan) When you borrow money, the lender may require nothing more than your promise to repay the debt. Unsecured loans usually involve less documentation. Obtaining an unsecured loan is usually quicker and does not require a formal closing. There is usually just an application, a promissory note, and perhaps a payment schedule. This differs from a loan involving collateral. UK Residents Click Here.

An unsecured loan does NOT require collateral — just your signature and a means to pay back your loan. When you borrow money, the lender may or may not require you to pledge collateral to guarantee repayment of the debt. If collateral is pledged, then you have a secured loan.

For secured loans, collateral can be anything of value, but collateral is NOT cash when it comes to loans — lenders do not require you to send cash as collateral or “insurance”.

Did you know that your home’s equity is one of the best sources of cash? For homeowners, interest rates are often quite low. With equity, you can finance big-dollar expenses, such as car purchases, home remodeling, or medical expenses.

Related Posts

  • No Related Posts

Filed Under: Mortgage Loans

About the Author:

RSSComments (0)

Trackback URL

Leave a Reply




If you want a picture to show with your comment, go get a Gravatar.