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- Unsecured Loan - |
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An unsecured loan is an option open largely to borrowers whose credit score and personal circumstances are such that they do not represent a high risk. Borrowers in the medium range of risk might be allowed a small unsecured loan. Unsecured loans differ from secured loans in that they require no collateral or security (such as the borrower's home) and permission to obtain one depends entirely upon the borrower's personal circumstances, the amount of the loan and the monthly repayments, which is calculated from the loan term. However, because of the lack of collateral, an unsecured loan can cost more, all other things being equal.
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Use our layman jargon buster to decipher other key industry terminology.
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
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| Think carefully before securing other debts against your home. Your home may be reposessed if you do not keep up repayments on your mortgage or any other debt secured on it. Loans secured on your home. |
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