Secured Loans: How do they differ from unsecured loans?

For first-time borrowers and seasoned pros, one of the first questions our loan experts commonly address deals with the differences between unsecuredpersonal installment loans.

Question: Why do interest rates tend to be higher on personal loans?

Answer: Personal loans are typically paired with higher interest rates than most other loans. This is due to the fact that they are not secured.

Secured Loans

By definition, a secured loan is guaranteed by property and typically has a lower interest. For example, if you

were to take out a secured loan for the purchase of a new home, your loan conditions would specify that your mortgage will secured by the loan. In the case of a default or failure to make payments on the home, the lending institution has the authority to take possession of your home in order to recoup their losses. Given that a loan is directly secured to a property or possession, this largely contributes to significantly lower interest rates on a secured loan. Secured loans are usually the most popular form of loan for borrowers and are considered low-risk for lenders.

About Us

Your Finance works with individuals and small business owners alike to get you the best unsecured personal loan, free from the hassle associated with traditional lending houses. With a simple application process available 24/7, our loan experts can get you approved for £500 and £15,000. To learn more about our unsecured loan services, please visit us at: https://installmentloanscompany.com