Get the Best Loan Rates Unsecured

What are Unsecured Loans?

Unsecured loans are those loans granted by the lender without any collateral.  In secured loans, the lender has a lien on some asset belonging to the borrower – property, in case of a mortgage, or a car in case of a car loan.  In case of an unsecured loan, the lender has no lien but only a promise from the borrower that he would repay the money.

Purpose of Unsecured Loans

Unsecured loans are usually of small amounts and can be used for various purposes.  The amount could be used to fund a holiday, purchase of an electronic item, house repair and so on.

How to get the Best Loan Rates – Unsecured Loans?

  • Online Search

The easiest way to get the best loan rates is to search online.  There are many lending websites which show comparative loan rates for unsecured loans. 

  • Find out the names of these sites by using a search engine. 
  • Select a few of the popular sites and visit each one of them.  These sites are connected to a number of lenders. 
  • The home page of each site will contain links to different kinds of loans.  A person who wants to borrow an unsecured loan can click on the link or button named ‘Unsecured loans’ or ‘Personal loans’. 
  • A page will be displayed where one is asked to enter name, contact details, loan amount, loan type and so on. 
  • A table will then appear with comparative rates offered by different lenders. The borrower can select the lender who offers the best loan rates unsecured.
  • Personally Gathering Data

Another method of getting the best loan rates – unsecured loans is to call or visit various lenders and get information regarding their rate of interest, repayment period and such other details.  One can then tabulate and compare the data gathered and select a suitable lender.

The borrower should keep in mind that personal loans carry a higher interest rate than loans with collateral as they pose a higher risk to the lender.