Often, speed is everything with loans. It’s one of the major factors that makes consumers decide to go for unsecured loans, rather than the more conventional kind of secured loan offered by a bank or building society. When you need quick cash, a lengthy contract and months of credit checks, value assessments, and negotiations can be obstructive. Many Brits are faced each month with a gap between the day their rent, bills or loan payments are due, and the day that their month’s pay come in. When this is the case, a little fast cash on the right day can prevent disaster. So every month, some consumers are looking for cheap loans which don’t take much time to arrange.

Time scale is a problem for those who prefer to make use of conventional, secured loans such as mortgages or bank loans. The reason? Collateral. A ‘secured’ loan neccessitates the pledging of high value property – usually the borrower’s home – which becomes the property of the bank or other lender if repayments of the loan fail to be made on the timescale agreed. A secured loan is usually designed to be repaid over a long period of time – years or decades – and means that if one of the repayment instalments isn’t made, the security can be repossessed: this is how the lender can afford to pay out large sums.

When providing a secured loan with property as the collateral, the lender has to determine how much the property is worth before deciding how much money to lend (so that they know how much they may potentially gain in the event of non-repayment). This means working with estate agents, legal advisors and finance experts before a loan can be offered. And when you need quick cash to pay off a pressing bill, this kind of loan will simply take too long to arrange.

For those who need quick cash, unsecured loans are the most common way to get it. Unsecured loans can sometimes be made on the same day that they’re applied for, and will rarely take more than a week or two to arrange. This is because there’s no collateral, or property pledged – instead, the lender makes money by charging a high rate of interest (which could be any sum from relatively cheap loans at 7% up to 50 or even 100% from some organisations.) The borrower gets fast cash – and on payday, should repay the loan as fast as possible, to avoid too much interest mounting up.

Please visit http://www.cashgenie.co.uk/ for further information about this topic.

http://www.cashgenie.co.uk/

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