Bad Credit Personal Loans

What is an unsecured loan?

An unsecured personal loan meaning reflects short-term borrowing solutions available without putting loan collateral. These are obtained based on the applicant’s personal credit history and monthly income capacity. The borrowed amount is for temporary financial purposes such as debt consolidation, DIY projects, or small-scale home repair.

Customisation makes the loans affordable. There will be no collateral obligation, nor there a mandatory condition of a guarantor. The repayment capacity of the loan applicant is the most critical factor.It will not be an overstatement to declare that it is even more significant than the credit score. However, one should also work on maintaining a stable credit history.

Easycheaploan is a 24×7 fund provider of unsecured loans. Our online application process makes it easier to borrow money. Are there more features we provide? Yes, indeed. Speedy decision policy and fund deposits within a maximum of 24 hours are prime highlights of our lending support. Anyone with a minimum age criterion of 18 years can apply for the funds.

If you have also come of age, start applying for these loans now.

How do unsecured loans work?

An unsecured loan qualifies you to get money without securing the loan with any personal asset. It can be used for any financial purpose. This is why many loan experts say that a personal loan is an unsecured loan. The lender considers your credit history, recent financial situation, and income for eligibility.

  • The loan amount is decided according to the repayment capacity. Once the loan is approved, give your consent on a loan agreement. Afterwards, the borrowing sum will be deposited into your account. For repayments, pay instalments on a decided date every month.
  • The repayments during the initial months/years include primary interest and a small part of the principal amount. The interesting part reduces as time passes, and the instalments will be majorly about the remaining principal amount.
  • Both part payments and pre-payment are allowed in case of personal loans which are unsecured. The lender must work individually for every borrower because all unsecured loan deals are personalised. It is why a borrower needs to work on his personal finances.
  • Repayment capacity is the most crucial factor in getting approval. A fund seeker must show regular earnings that are in the right balance with previous debts. The more one can pay off, the higher the amount one can get.
  • The financial history of the past 6 months is another decisive factor. When the lenders check someone’s credit history, timely paid bills and debts immediately appear.

A loan which is personal and unsecured is like a saviour for last-minute temporary requirements. Such requirements are recurring, and one should keep working on personal financial stability. Finance companies always approve loans for those responsible for personal finances.

What is the difference between secured and unsecured loan?

Many times, borrowers ask us if they can also get secured loans with unsecured ones and what the procedure will be. At first, both are different types of loans. Before applying for any of them, one should be able to understand that.

Let us understand it through a comparison of secured loan vs unsecured loan. Knowing about financial products is vital for making wise decisions.

Unsecured loans Secured Loans
Unsecured loans need no collateral to borrow funds. Secured funding comes with the obligation of pledging an asset. Example – home, vehicle, etc.
These are short-term loans to fulfil temporary financial needs. These are used to borrow a large amount for a long-term purpose or to buy a significant asset.
Features -higher rates than secured loans, lower borrowing limit, short repayment terms, faster processing. Features – lower rates, longer repayment terms, higher borrowing amounts,and longer processing time.
Examples – personal loans, personal lines of credit, and student loans. Examples – mortgages, car loans, loans against property, and long-term business loans.

The comparison above should be sufficient to understand the points behind secured personal loan vs unsecured. For both types, you need to prepare your finances differently. The procedures and eligibility criteria for secured loans are more time-consuming. If you plan to borrow money, choose your purpose, followed by loan type and apply.

Why unsecured private loans are beneficial?

These sorts of personal loans have multiple benefits, and you can count them. The reason is that the need for small-scale financial assistance is recurring. People require money for various reasons, depending on the diversity of their needs.

In such situations, an unsecured loan becomes a dependable solution. Let us read below and learn how widely it serves your needs.

  • Get money when you need it most

    Whenever we face a financial crisis, it becomes very difficult to ask for help from friends and family. Also, our savings sometimes drain out. In such a situation, compromising your self-respect and depending on others becomes difficult.

    An unsecured loan is an easier option. Apply through a quick online process, get funds, and feed your requirements instantly and respectfully.

  • Bad credit is not a problem

    When you choose the right loan solution, bad credit is actually not a problem. As you know creditworthiness is the main aspect while qualifying for a unsecured personal loan for bad credit. That is why your credit rating will not affect the approval decision.

    Give proof of regular earnings and show a stable financial history in the past few months, and the money will be transferred to your bank account. Credit score is a significant factor, but it is not decisive in direct landing.

  • You choose your purpose

    Unsecured loans do not restrict you to use the amount for any specific purpose. For whatever reason or requirement, the money can be used. This is why the lenders believe in speedy deposit of funds.

    The financial requirements of the borrowers can be of many different types. Usually, the small needs of money are urgent and short-term. Liberty inspires more and more people to rely on an unsecured personal loan confidently during a money crisis.

  • Instant approval decision

    Time is priceless, and when it comes to last-minute needs, every single second on the clock counts. The instant approval decision policy of unsecured personal loans saves time for loan applicants. They can borrow funds anytime for any specific requirement due to instant decision.

    Also, there is no time restriction. The loans are available 24×7 through an online process. The loan calculator makes the borrowing process even more predictable.

  • Low-interest rate through personalisation

    The low-interest rate is a positive factor for loan applicants. It is usually believed that a short term installment loan has a higher rate of interest, which is true. However, due to the customisation feature, the total cost is always pocket-friendly. This is what brings secured and unsecured loans to the same platform.

    It is believed that only a secured loan is cheaper in rates. With individualised deals, an unsecured loan is also affordable.

  • Higher approval rate

    98 out of 100 people get their loans approved. The approval rate itself is very encouraging. Availing funds has become easier due to the borrower-friendly nature of New Age Lending. You only have to show that you can repay the given loan and have a stable regular income.

    With just these two factors, anyone can get a short term personal loan. A 100% online procedure makes verification easy, supporting the idea of a high approval rate.

Easycheaploan is a dedicated lender with a backing of expertise and experience. With a vast customer base, we can assure you a great borrowing experience. Round-the-clock customer support and speedy process give you timely support.

Borrowing funds obligation-free is a great opportunity to fill any financial gap. The affordability factor is sufficient to prove to borrowers that unsecured loans are a dependable choice. Are you looking for funds? Click now and grab your money in an hour.

FAQs

How long it takes to get an unsecured loan?

It takes a minimum of one hour and a maximum of 24 hours to receive funds in your account through this loan. This loan solution is designed to fulfil short-term needs. That is why the instant approval decision is available.

Also, the approval rate is high. Funds are deposited faster than you can imagine once approved. However, you must provide accurate funds to the lender because it saves time during verification.

What if a borrower fails to pay an instalment on time?

The first effort should always be to pay the instalments on time. However, unsecured private loans are borrower-friendly. Missing an instalment does not mean we will be charged a late payment penalty for one week from the due date of repayment.

After that, our loan executive calls the borrower to talk about the delay. The late penalty will only apply if we don’t receive the money. Otherwise, it is fine if the fund bearer makes the payment, even with little delay.

How much can I borrow through an unsecured personal loan?

The minimum limit is £1000, and the maximum is £20,000. Still, every borrower receives the amount according to their creditworthiness. You can find the amount you can get using a loan repayment calculator. At Easycheaploan, we believe in transparent lending procedures. This is why the loan calculator and all-time available customer support help borrowers clarify their doubts.

What if I need funds late at night?

Short-term loans can be provided at any time of the day, as no collateral is included. It is the prime difference between secured and unsecured loans. Besides, the 100% online process allows the lender to deposit money instantly. You will get the funds in a minimum of an hour or a maximum of one day. It has nothing to do with the time of the day. Whether it’s sunlight or moonlight, you can get funds online anytime.

Why lenders reject a loan application?

Well, there can be multiple reasons for it. The primary reasons are the absence of repayment capacity, multiple hard-check footprints, and unstable finances in the past six months. If you skip to work on these factors, any lender may find it challenging to approve funds. The loan industry has its rules and regulations. No finance company can overlook the rules made by the controlling authorities of the direct lending industry.

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