Online personal loans – Gaining foothold in the UK credit market
- Author Bernard John
- Published April 13, 2007
- Word count 305
One can find a variety of personal loan products in the market – bad credit loans, business loans, car loans, career development loans, cosmetic surgery loans, debt consolidation loans, education loans, holiday loans, homeowner loans, home improvement loans and wedding loans.
A recent study indicates that secured personal loans have the largest market share in the UK loan bazaar.
This can be attributed to the fact that secured deals offer maximum loan benefits like quick attention, high credit limit (normally between £5,000 and £250,000), competitive low APR (normally 6.7% onwards), flexible payback terms and negotiable clauses – subject to basic credibility parameters like past credit history, DTI ratio and property value.
The above-mentioned benefits can only be availed by homeowners and property owners, because these loans necessities pledging collateral against the loan amount. Secured loans:
• Are suitable for big monetary requirements, as the credit range is quite high
• Are probably the only option for people who have been denied an unsecured loan
• Are most suitable for bad credit holders, as loan benefits are maximum .
Cons of availing personal loans in secured form:
As an alternate form of repayment, collateral protects the lenders investment, i.e., in case of repeated defaults or non-repayment, the lender can take over the pledged collateral to recover his money. Also, a secured loan deal has an additional thing – time-consuming property evaluation procedure, which requires a lot of time.
Growing popularity of online loans:
Another study indicates that the online personal loans are catching up in the UK loan bazaar, as more and more people are opting for loans over the Internet. This can be attributed to:
• Convenient presence of numerous lenders, who make loans more accessible and the entire loaning process very expedient
• Greater transparency in lending rates across the country
• Cheap loans as compared to conventional lending institutions, as their overheads are comparatively less .
The author is a business writer specializing in finance and credit products and has written authoritative articles on the finance industry.http://articlebiz.com
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