Loan Guide UK

What are loans?

A loan is basically a form of debt which involves the borrower receiving an amount of money from the lender. This money is generally paid back in a number of regular installments, with interest added for the priveledge. The interest varies from loan company to loan company, and is usually quoted as APR (annual percentage rate)

Loans can come in many forms, but fall in 2 basic categories:

1. secured loans - where the debt is protected by the form of a large asset, enough to cover in the event that loan repayments cannot be repaid.
2. unsecured loans - where the debt is not secured by any assets.

A loan gives you the opportunity to get cash for many applications. Perhaps you need to consolidate all your high interest debts, such as store cards or credit cards, into one easy low interest monthly payment. Loan rates often are much lower than these other types of debt, and so it makes sense for people to get a debt consolidation loan. Other reasons might be that you are looking to do home improvement and require capital to invest in your property. You may be looking to pay for a new car or holiday with a loan. There are many uses for a loan, and most lenders are quite happy to lend to you for these reasons. Some uses are listed below...

There are many uses for a loan:

• New car
• This years holiday
• Pay for christmas!
• Consolidate all your debts into one.

There are some advantages to getting loans:

• Personal loans can be a great way to borrow
• Secured homeowner loans can allow you borrow using your home as security
• APRs (interest rates) are usually much lower than other forms of borrowing