Unsecured Personal Loans

Unsecured Personal loans are available for sums between £500 and £25,000 depending on its purpose and your circumstances. The loan usually repayable over a period between 6 months to 10 years. Lenders make there money by charging interest on the amount borrowed. This rate can either be fixed or variable. With a fixed rate loan you know exactly how much you'll have to repay but with a variable rate loan the amount with change with the economy, so you're taking a gamble.

Personal loans can be either secured or unsecured loans. A secured loan is where you secure the loan against a major asset such as your home. They are cheaper than unsecured loans but if you miss any payments you risk loosing your home. Secured loans are commonly used when borrowing large sums of money over a long period of time. Unsecured loans are usually more expensive than secured loans but there is no risk too your home. They are commonly used when borrowing smaller sums of money over a shorter period of time.

Make sure you compare annual percentage rates (APR) when looking for a loan. It's a calculation that allows consumers to benchmark the cost of borrowing. In short the lower the APR the better.