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Guide to Personal Loans
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Nationwide Personal Loans - Get a decision within minutes with no hidden fees or charges.

Barclays™ Personal Loans - For existing customers only. Apply online now.

Unsecured Personal Loans - Personalloans at JSt. From £1,000 to £15,000. Good or Bad Credit.

Secured loans - Unsecured Loans - Types of Loans

Despite the growing number of money lenders around, there are really only two types of personal loan on the market, unsecured and secured loans. The table below compares the features and common uses of secured and unsecured loans:

  Secured Loan Unsecured Loan
Description An asset, usually a property is used to guarantee the loan. Approval is primarily based on the value of your property rather than your credit history. Failure to keep up your regular payments could result in the lender selling the asset to repay the loan. This type of loan is also known as a home owner loan. An unsecured loan is not secured against an asset or property. Approval is primarily based on your credit history, however, If you own a property you may get preferential terms. Failure to keep up regular payments could affect your credit rating. This is the most common type of personal loan.
Borrowing Features
  • larger amounts up to £50,000+
  • flexible repayment plans
  • longer payment terms up to 25 yrs
  • available if self employed
  • poor credit history and/or County Court judgements not excluded
  • lower interest rates
  • fixed or variable interest rates
  • smaller amounts up to £25,000
  • less flexible repayment plans
  • shorter repayment terms around 5 to 6 yrs
  • more detailed credit checks
  • don't have to own a property
  • higher interest rates
  • fixed interest rates
Common uses
  • Home improvements
  • Debt consolidation
  • Car loan
  • Larger borrowing over a longer period
  • Holiday
  • Household goods purchases
  • Wedding
  • Smaller borrowing over a shorter period

Note: If you own a property and you want a personal loan for home improvements seek financial advice as it might be more appropriate for you to re-mortgage and raise the funds that way instead.

Download the Personal Loan PDF Guide here - see our other free PDF guides here

Guide Contents

What are personal loans?
 Managing your personal loan
 Secured Loans - Unsecured Loans - Types of Loans
 Loans Online - Find a loan that suits you
Apply for a loan
 Personal Loan - FAQ's
 Where can I go to get more personal loan help?

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