Before you plunge into choosing what lainaa ilman vakuuksia to avail of, here’s a quick rundown of its 4 main categories. As you contemplate on how you can apply for a loan, read about which one will suit your financial needs the most.
1. Secured Loans
Secured loans are the loan option for borrowers whose credit score and credit history aren’t as spotless as lenders require them to be. This is because said loans necessitate an “exchange” for the loan amount itself. Collateral.
Since collaterals come in the form of a variety of valued financial assets, the latter will serve as lenders’ “security”. By this token, they’ll be more flexible in allowing borrowers to sign up for loan packages in spite of not hitting a certain credit score (even this varies per lender’s own terms and conditions for each of their loans).
Lenders consider these loans as a “low-risk” classification. Unfulfilled repayments can simply default to the ceasing of the collateral that borrowers have agreed to pledge prior to receiving their loans.
2. Unsecured Loans
These are the exact opposite of secured loans in that these do not entail the need to submit collateral as a form of loan repayment security. Alternatively stated, they are loans you can avail of without giving lenders any kind of value and/or financial asset.
If that’s the case, what, then, will lenders utilise as their guarantee for borrowers’ regular recompense? Current income and/or credit history and credit score. In a sense, borrowers’ credit scores are deemed as the actual numerical value of the degree of their creditworthiness, or otherwise.
Although a number of unsecured loan types are, therefore, held against relatively high credit scores, this isn’t always so. Depending on your current income type and status, lenders may be a little lenient regarding this. You’ll still be able to get an approval through other balances such as interest rate and repayment terms.
3. Variable-Rate Personal Loans
You may know this by its other name, “float” or “adjustable” rate loans, these have interest rates that “vary” and are “adjusted” throughout the duration of the repayment period.
The benefit to such variable interest rates is that they often start out at very low numbers. Lower than average, even. So, if your current financial troubles are severe yet temporary, and you foresee it returning to its status quo after a short while, you’ll find this option very helpful indeed.
The highest interest increase usually has a cap, which you and your lender can discuss. Furthermore, as analysts suggest, only borrowers who have the financial capability to pay off their debt immediately are suited to variable rate loans.
4. Fixed-Rate Personal Loans
Now, here’s the polar opposite of their variable rate counterpart. Fixed-rate personal loans are, for lack of a more adequate word, “fixed”. Not only does the interest rate remain steady for the entire loan life, the amount of the monthly payments
Here’s one of the most common types of personal loans because of its easy-computability. Exact interest rates and repayment amount will be subject to lenders’ decisions but generally, these can be computed even before you sign up for a loan. And that can be done by utilising a personal loan calculator.
Borrowers who have fixed budgeting frameworks select fixed-rates personal loans as it requires a consistent debt-repayment plus interest rate throughout the life of the loan.