Tag Archives: collateral
Personal Loans For Unemployed Quest For Hurdle Free Loans Despite of Unwaged
Routing out huge necessaries is now no uphill task even when you are trapped into undesirable circumstance of unemployment. Here is no required job as well as income proof in order to avail personal loans for unemployed. So you are quite free from this hassling procedure. You can grab maximum amount in accordance with your needs. On the other hand minimum amount is availed for certain time period. Benefiting with these loans, all kinds of borrowers are acceptable easy terms and conditions.
Personal loans for unemployed can be availed in two kinds of categories secured and unsecured. Opting for secured form of the loan you need to pledge your valuable collateral in the name of home, estate, vehicle, jewelry etc in lieu of the loan amount. Your placed collateral is safe and sound when you will repay the amount on due date otherwise your collateral can be lost. With secured loans there are utmost advantages you can get the amount ranges from £5000 to £75000, for longer repayment period of 5-25 years. The rate of interest is very low.
On the other hand you no need to pass through pledging assets as collateral in lieu of the unsecured loan. Through these loans you no need to be good credit holder and home-owners. So these loans are the most beneficial for all in order to grab the amount ranges from £1000 to £25000. This mentioned amount is repaid in the term duration of 1-10 years, but the rate of interest for these loans a bit high to compare secured ones.
Moreover, to avail these loans borrowers do not need to provide the list for which the amount is to be availed. So you can use these loans for various needs such as debt consolidation, paying off utility bills, purchasing car, wedding expenses, going on exotic holiday trip, education expenses and so forth.
Even if your quest is for hurdle free loans then you do not have to worry. You can easily apply online and compare various loan quotes. In accordance with your choice you can opt for one. Here you have to fill out a simple online application form with few basic details and submit it. The amount will be transferred into the borrowers bank account within 24 hours without demanding lengthy paperwork and faxing procedure.
Homeowner? Get Higher Loan Amounts On Any Loan Type
If you are a homeowner you can easily get loans that require collateral and thus obtain advantageous terms on your loans. However, not everybody knows that being a homeowner will also guarantee you better loan terms on other loan types including unsecured personal loans. But most importantly, whether you want a secured or unsecured loan, you will be able to get significantly higher loan amounts thanks to home ownership.
Homeownership represents a significant risk reduction for the lender even if the assets are not used as collateral for the loan. Thus, anyone who is a homeowner will find in lenders a better disposition to negotiate loan terms and will be able to obtain more advantageous terms on loans including higher loan amounts without having to overpay for them.
Homeownership and Risk
Homeownership and risk are two concepts that are related. The risk implied in any financial transaction will depend on the applicants creditworthiness and on other factors too. One on these factors is the applicants ability to repay the loan which is determined by the income and all the applicants assets that can be eventually sold to use the money to repay the loan.
Thus, being a homeowner greatly reduces the risk involved in any financial transaction, even if the property or properties are not used as collateral for that particular loan. This is due to the fact that regardless of the use of the properties, they are still unofficially guaranteeing repayment of any applicants obligations because there are legal processes other than repossession that can force the borrower to sell the property to repay the loan in the event of default.
Risk And Loan Amount
We have analyzed the fact that homeownership and risk are related, now we will go a step forward to see how risk and loan amount are related. Actually the risk involved in the financial transaction determines most of the loan terms. The loan amount is definitely not the exception. If the risk is higher, the lender will prefer to lend the least money possible in order not to risk too much on the financial transaction.
Thus, a lower risk will imply that the lender will be willing to lend a higher loan amount as this will increase his profits without too much risk of default. Since the risk can be pondered in terms of money, the higher the loan amount lent, the higher the risk. But the opposite is also true: the lower the risk implied (due to other factors like homeownership) the higher the loan amount that can be lent.
Conclusion
From the above two considerations, one can infer that homeownership implies a lower risk in any financial transaction regardless of the use of the property as collateral of the loan or not and that this risk reduction affects the loan terms in a positive way. Thus, due to the risk reduction produced by homeownership, the applicant can get lower interest rates, longer repayment programs, lower monthly payments and higher loan amounts. This last consideration is the logical consequence of the whole analysis and explains the reasons of the articles title.