Personal loans are carved out keeping in mind the various nuances of the borrower’s needs and the prevailing circumstances of the borrower. To make it more accessible to individual loan applicants, they are classified in to secured and unsecured form. So based on the requirement, you can opt for any of the two forms.

The secured option of these loans requires any valuable asset to be placed as collateral. By placing the collateral, it assures the loan provider that the amount offered will be repaid. Based on the equity value of collateral, lenders approve the loan amount. Amount in the range of £5000-£75000 can be borrowed which can be paid back within a period of 5 -25 years. This loan is beneficial to meet requirements which ask for a bigger amount.

On the other hand, unsecured option is designed for those borrowers who do not wish to pledge any asset or do not have any. Amount offered under this loan scheme is in the range of £1000-£25000. The repayment duration of these loans are limited to a period of 6 months -10 years. Lenders approve the amount on the basis of borrower’s monthly income, employment and credit history.

The rate of interest for these loans usually varies from lender to lender. If the borrower is looking for cheap interest rates, then he can apply for the secured option. It is because the loan amount is secured against collateral. On the other hand, unsecured option of these loans has a very high rate of interest. This is done to cover the risk factor. However, with a proper research, borrower can find suitable rates.

Bad credit borrowers can also apply for these loans but at a slightly high rate of interest.

It is preferable to apply for these loans using the online option. The loan amount is processed free of charge that too without doing any tedious paper work. But before opting for the loans, it is better to compare the various quotes of lenders and then select a suitable deal.