Types of loans in the UK

Now a day, companies have come up with so many different types of loans that are borrowed from a lender. It can be any bank, any society or any other organization. These all companies provide you loans with some defined interest rate according to the money you are borrowing and the repayment time is also defined by them, it can be few months to years.

There are basically two types of loans: secured loans and unsecured loans. Unsecured loans, as their name, indicate that they are not directly connected to any of your assets while secured loans have a direct link with your property or anything that you own. Secured loans are also known as homeowner loans. In the secured loans, if you have no money for the repayment then your lender has the authority to force you to sell your property so that you will be able to return the loan. Car loans are also a kind of secured loans. Lender secures his money with the car that you own.

Secured loans:

Secured loans are secured against any of your own property. This type of loan should be used when you want to borrow a very big amount because you are securing this large amount against your home. One of the main advantages of secured loans is that they are not linked to your credit card. These types of loans are released against your property and the banks or other lenders have no interest whether your credit card rating is good or not. Therefore, you should select the amount according to the income not according to your property otherwise; it may result in the loss of your property. These loans are very high in amount; they can be from £15000 to £50,000.

Logbook loans are also a type of secured loans. You can receive money against any of your vehicles whether a van, car or motorbike. You can use Lead Free logbook loan calculator to estimate the amount that you have to repay every week and if your finances allow you then you can borrow loans from these companies as well. Such types of loans are very useful when you want urgent money. With the help of logbook loans, your money will be delivered to you within 24 hours either you want a cheque or in your bank account and repayment will be according to the results of Lead Free logbook calculator.

Unsecured loans:

Unsecured loans are not linked to your any property or personal thing. They are mostly used for a very small amount of loan. It can be from £1000 to £25,000. It is also dependent upon the rating or score of your credit card. If you have a good score, you are more likely to get these loans. Because of their small amounts, these loans are paid within a short period of time. It can be one year to 5 years. The short duration of repayment is very beneficial in another way. You will have to repay a very short amount of interest if you can repay within a small time. This can reduce your burden as well. Applying for a guarantor loan from www.loanswithguarantor.net could mean you get the best of an unsecured loan even if you have poor credit.