Most people use unsecured loans when borrowing from the bank for things like cars, holidays and furniture.
What is an Unsecured Loan and Should I Get One?
The loan is made after the lender checks out the applicant’s ability to repay but they do not link the loan to a house or other assets. So, if you do not repay, the bank has no automatic right to take your home from you. As a result, unsecured loans are available to renters as well as homeowners.
Unsecured loans tend to be for smaller amounts and shorter periods than secured loans, and their interest rate is usually higher. Whatever type of loan you choose, it is important to have a responsible attitude toward borrowing and be sure that you can afford to repay on time.
Typical Loan Amounts
There is no “typical” unsecured loan. They can be for very small amounts as low as £100 for a couple of weeks, or up to £25,000 or more across several years. Longer term loans will normally require monthly payments but the smallest loans might be repayable by a single amount covering the loan plus interest. Unsecured loans are generally fixed rate, so you know exactly how much they will cost you right from the start.
What Type of Unsecured Loan Can I Get From MYJAR?
As MYJAR is a responsible lender, we make all our terms and conditions transparent. We only lend to individuals with a regular income to ensure all our customers have the best chance to make the repayment. If you repay your unsecured loan on time there won’t be any additional charges, and we won’t surprise you with the repayment date. You’ll receive a text and an e-mail from us several days in advance.
What Can I Use my Loan For?
Short-term or unsecured personal loans from MYJAR can be used for any responsible purpose. As long as you are confident that you can repay on time, it’s your choice how you spend it – from birthday presents for the kids to fixing the boiler, a MYJAR loan could be the right solution for helping you at a time that you need it.
This article was brought to you by MYJAR. We're an award-winning direct lender, committed to providing clear, simple and responsible loans when our customers need us. If you need some assistance to meet an urgent financial requirement on either a short or long term basis, APPLY NOW for one of our loans.
Warning: Late repayment can cause you serious money problems. For help, go to moneyadviceservice.org.uk