Saturday, August 11, 2007

Personal Loans - Get a Whole Lot of Variety

In the year 2006, the UK personal loan market was worth £83 million. It is expected to grow by 19 per cent by the year 2011. There is a lot of support for this market in the UK. The reason is simple wide applicability and easy availability of personal loans.

One of the biggest applications of personal loans is for buying a car. A research shows that nearly 40 per cent of British take out a loan for buying a car. The second most popular reason was debt consolidation. Many people prefer these loans only because of the wide range of applications that these loans can be put to. No other loan is as popular as a personal loan.

There are different categories of people in the UK seeking personal loans. These include borrowers with bad credit history, borrowers with clean credit record, self employed professionals, salaried class borrowers, businessmen, homeowners and tenants. All these people can depend on personal loans. There are some basic conditions that are required to be fulfilled by every loan seeker. You must be a UK resident and of competent age so that you can legally enter into a contract with the lender.

Homeowners and tenants both can get personal loans. Secured Personal Loans are loans that require your home as security while unsecured personal loans do not have any such requirement - you can get them without any security. Homeowners can apply for both secured and unsecured personal loans but tenants can only rely on unsecured personal loans.

You do not need to worry even if you have a bad credit record. There are bad credit personal loans that can solve your purpose. However, these loans involve relatively high rate of interest when compared to regular personal loans. With such a wide variety and huge reach, these loans are definitely going to grow further in the future.


No comments: