Money has its actual value only when you get it at the time of need. This is why you save money for rainy days. But sometimes, several financial needs are bigger than your savings. They happen unpredictably, and you don't have sufficient funds. Unsecured loans in the UK are short-term loans that fulfil your requirements when you are in a financial fix.
The instant approval decision policy without collateral or guarantor ensures that you receive funds on time. Once you qualify for an amount, you receive funds within 24 hours. Customised deals indicate that you get an amount according to your repayment capacity.
At ArbitrageLoans, we process your loan application through a 100% online loan procedure. An unsecured loan does not need any complicated procedure or obligation. It means you get funds the same day. There is no purposerestriction on the loan.Therefore, borrow for any reason and repay through easy instalments. Apply now and get funds instantly.
Unsecured personal loans are short-term loans that do not require collateral. Unlike secured loans, where you require collateral (for example, a home or car) for a secured loan, there is no such requirement in unsecured loans.
In the case of unsecured loans online, the interest rate is slightly higher. This is because the lender has no assets to seize in case of default. However, due to customised interest rates and loan offers, you borrow funds according to your repayment capacity.
Some examples of unsecured loans from a direct lender are personal loans, short-term loans, small business loans, etc. Availing these loans is quite easy as no obligation or collateral is involved.
Due to flexible policies, the loan procedure starts and ends quickly. We always have affordable deals for existing and first-time borrowers. The proven offers can give you an idea of your loan eligibility. You can use the loan calculator to check your eligibility.
UNSECURED LOANS AT A GLANCE
Every short-term loan with no collateral requirement is called an unsecured loan. You will find many such loan solutions serving different financial needs. Let us know its different types.
There are multiple reasons why people depend on unsecured loans so much. Let's find out what makes these loans beneficial for millions of people across the UK.
Although unsecured loans are affordable, there are specific steps to improve your approval chances. This improves your approval rate and opens up a way to get free loans.
Ensure regular earning
You need to prove a strong repayment capacity to take any kind of loan. For this, you must have regular earnings. You must provide proof of salary or income for at least 6 months to 1 year. Without this, you can apply for a loan but may not get approval.
Arrange bank statement
You must provide a bank statement for the same duration for which you need proof of income. This gives an idea about your overall financial behaviour. The bank statement indicates not only about your income but also about your other financial transactions.
Pay bills and obligations timely
Pay your bills and other obligations in a timely manner. Although unsecured loans online are available even in poor credit situations, it is vital to pay the debts in a timely manner. This shows your improved financial behaviour. Inconsistent payments may lead to loan rejection.
Avoid multiple loan applications
Sending loan applications to multiple lenders creates multiple credit search footprints on your financial records. This makes you appear credit hungry and your credit rating degrades. This can be a significant reason for your loan rejection. Hence, apply for a loan to only one lender.
Apply for an amount you can repay
Your creditworthiness is among the most critical factors. If you want to avoid rejection, always apply for an amount you can actually repay. Use your budget calculator to determine all expenses in your monthly budget. Check how much instalment you can afford, which will give an approximate idea of the loan amount.
Secured and unsecured loans in the UK are different in many ways. Most borrowers who apply for the funds to us have the same confusion. We believe in educating our borrowers and offering affordable deals.
Unsecured loans |
Secured loans |
| Collateral not required | Collateral required |
| Higher rate of interest due to no security | Lower rate of interest due to security through collateral |
| The speedy online loan process and faster fund deposit. | The online loan process takes time due to the verification of collateral. |
| Examples are personal loans, credit cards, student loans, no guarantor loans, etc. | Examples are car loans, mortgages, and home equity loans. |
Any collateral does not back unsecured loans. On the other hand, secured loans need collateral to approve funds. The collateral can be a vehicle or property, depending on the lender's conditions. In case of default, the lender can seize the asset. This is why unsecured loans are riskier for lenders and safer for borrowers.
Several factors act decisively while deciding the interest rates of an unsecured loan. These factors are credit score, bank statement, income proof, and other financial factors. Generally, the conditions are the same, but some lenders may have more demands.
This may be difficult, but if you have any other sources of regular income, you can get approved. These sources can be investments, savings, temporary jobs, unemployment benefits, etc. Simply speaking, you need to ensure the presence of a regular income to prove repayment capacity.
Yes, you can easily consolidate unsecured loans if you have multiple loans. Consolidation turns them into one loan and you pay only one instalment for one loan. You get an affordable interest rate and a smaller instalment. Previously, you paid multiple instalments for all loans at different interest rates. Now, you have one loan and one interest rate. That is definitely affordable.
Some lenders, like ArbitrageLoans, allow you to increase your loan amount. However, this may not be guaranteed, as the individual financial conditions of the borrowers are important. You need to confirm this flexibility before you even apply for the funds. Borrower-friendly deals are an additional gift for borrowers, which not all lenders offer.
No, you cannot get an unsecured loan without a credit check. In fact, no loan process is completed without a credit check. It is a vital part of the loan procedure. The lenders need to know your overall financial behaviour. Also, it is a lending rule no lender can break. Depending upon your credit record check, lenders decide the loan amount.
