UK Personal Loan

A Personal Loan is usually a loan taken out by an individual and used for personal reasons rather than say business purposes.

A Personal Loan can be used for whatever you want. It could be used for something like decorating your home or plastic surgery for yourself. A personal loan may or may not be secured on your home depending on your circumstances.

A Personal loan is based on a consumer's income, debt and credit history, if the borrower is a homeowner then they could choose to have a secured loan. Secured loans usually come with a better rate of interest because of the security ( the property) the lender has should repayments not be made.

If you are a homeowner then a secured personal loan is an option, if you are a tenant then you can get a personal tenant loan. Should you fail to make repayments on a secured loan then your home would be used as collateral. The lender can legally take possession of your property and re sell it in order to recoup any debt they are owed.
Secured Personal Loans are considered to be a lower risk to lenders and so interest charged is usually lower.

There is also the option of a Personal Debt Consolidation Loan should you have many debts that you struggling to repay. This type of loan is used when you have several debts, such as credit cards and personal loans that you are unable to budget for each month. You can consolidate the debts by bringing them all together and opening one single new loan to pay them all off. The new loan can be structured to make things easier for you, you could choose to lengthen the loan period, this would leave you with a smaller repayment to make each month.