Immediate monetary requirements can be made with the personal loans in UK. They are easy to get and easy to repay. Anybody who is above 18 years of age can apply for a personal loan in UK. These loans are usually guided by the FSA rules and regulations. Hence, hey are transparent in nature. Every bank and financial organizations in UK are lending money these days. Loan campaigns and fairs are organized by the lenders to attract customers. Various lenders offer different kind of attractive packages and easy to repay products. You can surf the internet and browse to get the best deal in the market. You do not have to go to the loan shops as online application forms are available. You can calculate your repayment amount yourself with the loan calculators available in the lenders websites.
The loan advance can be from £1000 to £25000. The loan term may vary from 5 tears to 25 years. Different types of interest rate are available in the market.
Fixed rate:
You can book a fixed rate of interest .The rate of interest remains the same through out the tenure. The booking fee for a fixed rate is comparatively higher than other booking rates.
Tracker rate:
Tracker rate tracks the base rate of Bank of England. It goes up and down parallel with the base rate.
Discount rate:
Discount rates are offered to the premier customers or generally to the potential customers whose credit ratings are very good.
The lenders gauge the borrower's affordability and capacity of repaying the loan through various searches and documentations. They have their own ways of doing that Involvement of less legal formalities makes these personal loans more popular.
There are lenders in the UK market who lend money to people whose credit ratings are not so good. Interest rates are much higher in those loans.
Lenders have their own set of experts to help the customers. Good customer service is also available during the tenure of the loan.
Personal loan may be of two kinds-
Secured Personal loans:
These loans are secured against some assets. It may be your home or the car. If you fail to repay the loan then your property may be repossessed. As the risk factor is less for the lenders and the loan is secured, the interest rates are less.
Unsecured Personal loans:
The unsecured lending involves a risk factor for the lenders. Hence the interest rates are higher. The lenders only assess the borrower's credit worthiness and capacity to repay the loan amount.
Various repayment options are available to repay the loan. Attractive packages have been launched in the market.
You can repay the loan before the scheduled amortization date of the loan. You can pay a lump sum to repay the full loan amount or a part repayment can be done. You will be charged an early repayment charge.
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