Unsecured Lending doesn’t require any type of collateral or guarantee. Instead, lenders approve unsecured loans based on your creditworthiness, unsecured loans include personal loans, student loans, and credit cards. Unsecured loans and lines of credit are only confirmed by your promise to pay, the lender still has recourse if you fail to make payments and can take action on the personal level as well as legal action.
Here are the most popular forms of unsecured lending options where our team can assist you to get one according to your need and requirement.
- Unsecured revolving loan has a credit limit that can be spent, repaid, and spent again.
- Unsecured term loan, you have to repay in equal installments until the loan is paid off at the end of its term. It can be similar to a personal loan but without any collateral.
Features of Secured Lending
- An unsecured loan is supported only by the borrower’s Trust and worth rather than by any collateral or other assets.
- Unsecured Loans require higher credit scores for approval as Unsecured loans are riskier than secured loans for lenders.
- If you default on an unsecured loan, the lender may commission a collection agency to collect the debt or sue you for legal considerations.
- Lenders can decide whether or not to approve an unsecured loan based on your credit score and trust presence.
Benefits of Secured Lending
- No collateral is required in Unsecured Loans.
- Unsecured Loans provide Fast access to funds.
- Unsecured Loans provide No risk of losing assets.
- borrowing restrictions in Unsecured Loans are less as compared to other forms of lending.
- Higher spending limit available for those with strong credit in Unsecured Loans.