There are two formats in which lenders offer loan products; Unsecured and secured. In the case of secured loans, the borrower must pledge an asset in order for them to be availed with a loan. In case they default in their loan repayments, the asset pledged is forfeited by the bank.
These assets are sold by the financial institution to cover the cost of the loan. In the case of the unsecured loans, the only pledge you give is your current employment status as the assurance that you will be able to repay the loan amounts if they are advanced to you. There is no collateral pledge with large unsecured loans. It does not matter the amount of money you want, the lender will advance it to you. The bottom line is your repayment capabilities, so if you earn a huge salary, you are going to be advanced with huge loan amounts while the opposite is true.
Large unsecured loans can be advance to anyone as long as they can be able to it back. The loans are normally approved on the bases of your net income, debt to income ratio and your credit record score. Once the loan amounts have been approved and wired into your account, they can be used for a variety of purposes, for example, settling an urgent medical expense, debts consolidation, college fees payments, home improvements, financing for a new car etc.
The amounts of money that can be availed ranges from $ 1,000 to $ 25,000 and can be repaid over a period of 6 months to 10 years depending on the amounts advanced. Some lenders may allow the borrower to borrow more than the permitted limit if their specific situation demands it. The repayment duration is also extendable but at a higher rate, the short the repayment duration, the less you pay in interest while the opposite is true.
The best method for applying for these loans is online. This fastens the loan processing procedures tremendously. Normally you do not need to fax or fill in any physical forms when you apply for the loan online, you will only be required to fill in the lenders provided online loan application form. Once the filled in information adds up, the loan will be approved immediately. These loans are ideal for tenants, non-homeowners, homeowners who get wary of pledging their hard earned asset as the collateral against the loan.
To qualify for the loan amounts you need to a grown up who is a permanent resident of the country they are applying in. The applicant must also provide some proof of being either employed or self employed for the lender to consider them for the loan. On top of all this, the borrower must have a regular and an active banking account on which the availed amounts will be deposited in.
Before settling for one specific lender, it is a good idea for the borrower to do some thorough research on what is on the offer from the various online loan providers. This can be done easily online by the use of the availed loan calculators. Zero them down to the lender offering you with the best loan deal and nothing less.