If you’re thinking about a Personal loan, FinanceBizz gives you real choices. We make it simple to find the amount, terms, and the rate that fit your needs.
- Starting a new business
- Starting a family
- Home improvements / extensions
- Funding a holiday
- Funding requirements for school fees
Types of personal loans: Unsecured vs secured
Secured personal loans
Use an asset to secure the loan, such as a car. This asset is then used a kind of security against the debt. The money borrowed can generally be used for any legal purpose such as debt consolidation, home renovations, school fees, paying for a holiday or buying a car – although check with the lender first! If you are unable to repay the loan, the lender may be able to sell your security item.
Unsecured personal loans
Are so called because the lender requires no security for the debt. The loan is still subject to your ability to repay it, and if you aren’t able to do so, the lender may take you to court. The interest rates on unsecured loans are higher on average than secured personal loans, which reflects the higher risk of losing money for the lender.