A personal loan is meant for serving your personal requirements. Such a loan therefore must come at low cost so that the borrower does not feel its repaying burden much. In the UK, you can locate numbers of lenders who are providing personal loans for every type of borrowers. The lenders do not put any restrictions over use of the loan. You can either take a personal loan meant for a specific purpose like home improvement, buying a car, wedding, holiday tour, debt consolidation or you can use the loan for variety of purposes.
In the UK, personal loans are categorized under secured or unsecured options to cover all types of borrowers as per their requirements and circumstances. Secured personal loans are ideal for borrowing greater amounts. You would be pledging home or any property of good value as collateral. The loan amount is based on value of collateral. But the main benefit is that secure loans for personal purposes are of lower interest rate which gets reduced for good credit borrowers. Also, larger repayment duration of 5 to 30 years is another advantage that gives flexibility to the repayment of installments.
Unsecured personal loans are meant for smaller borrowings of up to £25000 usually. These loans are given without collateral, making them suitable for tenants or non-homeowners, though homeowners are also eligible if they do not want to risk property. But to cover risks, lenders charge interest at higher rate which may go further higher in case of less the perfect credit of the borrower.
People with bad credit history having late payments, arrears, payment defaults, CCJs and IVAs etc are easily approved secured personal loans which are less risky. Unsecured loans for such borrowers will depend on their repaying ability.
In the UK, online lenders are most suitable source of personal loans if lower rate, fast and cost free approval is your concern. Pay off the loan in time for escaping debts and improving credit score.