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What are Loans?

Loans index

People borrow money for all sorts of reasons. You can take out a loan in order to buy a new car, or perhaps pay for home improvements, a family holiday, a wedding or even to consolidate your existing debts. Personal loans are a way in which you can borrow money from a lending company, whether that’s a bank or specialist loan company.

In very general terms, there are two types of personal loans; secured or unsecured. The amount you will be able to borrow will depend on the type of loan you want and on your personal circumstances (your employment status and credit history, for example).

Usually, loan companies will lend up to £25,000 for a term of between 6 months and 10 years for an unsecured loan. £25,000 is the maximum amount covered by the Consumer Credit Act, which regulates credit agreements between companies and individuals and provides protection against unfair lending practices.

With a secured loan (which will require your home or other property to be put up as collateral) the loan amounts can be higher. Interest rates vary from 6% to 20%, depending on the type of loan and the length of the repayment period. Typically though, interest rates are lower on secured loans and on larger loan amounts. There’s no shortage of loan companies eager to lend you money. Just remember to take some time to shop around -that way you’ll be sure of finding the personal loan that’s most suitable for you.

Comments & Discussion

i_play_dirty @Sun, 05 Sep 2010 00:00:21
@a_silent_song If you recall, I didn?t loan him a nice one, just my old Walmart brand one. But still...
prima21010 @Sun, 05 Sep 2010 00:00:13
LOL I'm trying ta buy alot of shitt i can't afford somebody loan me some money please
sammhoover @Sat, 04 Sep 2010 23:58:39
Someone loan me $10!
ModelSupplies @Sat, 04 Sep 2010 23:58:33
There is no greater loan than a sympathetic ear. ~Frank Tyger via @awakeningaimee @paul_steele @blogomomma
daniel_tang @Sat, 04 Sep 2010 23:55:05
@louisewadetw but I will do once my student loan comes in 2 weeks haha! hey then we will be matching! :D lol xo
sonofpaula @Sat, 04 Sep 2010 23:52:09
Ok, me and the wife took out a small loan and JUST SAW #Inception in IMAX...finally. Great flick.
ErinNYC75 @Sat, 04 Sep 2010 23:49:22
@Mr_jwilliams I remember hearing he might go on loan to Hull, but don't know if that went through or not. We didn't sell him.
LenaNemo @Sat, 04 Sep 2010 23:47:24
RT @ganstajo: #DarkHumorParty winner of the day (w/ a loan of an *R*)....@5tevenw Don't join dangerous cults: Practice safe sects.
kyleluttrell @Sat, 04 Sep 2010 23:43:48
Nutt "the people helper" coached a great game today. We have a fire nutt banner we can loan the people of Mississippi
VCEMonk @Sat, 04 Sep 2010 23:36:52
RT @tscalzott: Car dealer/loan hell. Fun day. < rather break my arm.
tscalzott @Sat, 04 Sep 2010 23:35:33
Car dealer/loan hell. Fun day.
StayDolo @Sat, 04 Sep 2010 23:34:34
Shout out to the girls with diplomas that got enough money to loan us
blogomomma @Sat, 04 Sep 2010 23:31:44
RT @paul_steele: RT @awakeningaimee: There is no greater loan than a sympathetic ear. ~Frank Tyger
NaomiElenaa @Sat, 04 Sep 2010 23:31:02
@EmmaBenson yeah, can't keep accepting money off her. Wish I could just pause banks until my student loan comes so I can start fresh.behave.
ilphotog @Sat, 04 Sep 2010 23:29:57
@Union206Studio I don't need luck, I now need a loan.....