What Loan Products Are Available Today?

Nowadays, there is a loan product available to suit almost any financial situation. Whether you’re looking for £10,000 to buy a new car, £5,000 to pay off bad credit or £200 to tide you over until your payday, there is a lender somewhere that should be able to help. checkout her latest blog posted at http://www.westnewport.org/growth-guarantor-loans-online/

Ever since the introduction of the Internet, the loan market has changed dramatically. The Internet has meant the lenders are able to offer quick decisions and same day guarantor loan payouts, something that was simply not possible before. It has also meant the lenders are able to contact applicants and existing customers with ease via things like text, email, and instant web-chat facilities.

 

Here are just some of the options available:

Peer-to-Peer Lending.
Often referred to as social lending, this is a relatively modern approach to finance. It uses the idea of a borrower getting financed by investors who are funding all the lending. The investor then makes a margin depending on the interest rate the borrower is being charged. The “lender” in this situation is more like a middleman, taking a percentage of the interest charged.

Guarantor Loans
A guarantor loan is a personal (or unsecured) loan that is backed by a friend or family member with good credit. This means that in a lot of cases the main applicant of a guarantor loan can have a certain degree of poor credit and still be approved for the finance. This works because the lender has a “plan B” and if the applicant is unable to pay they have the right to ask the guarantor for the payment instead. learn additional information straight from the original source.

Logbook Loans
Logbook loans are secured against a car. They work in a similar way to secured loans. The amount available to the borrower is relative to the value of the car the loan is being secured on. If the loan goes unpaid the lender will repossess the car.

Secured Loans 
Secured loan lenders will be able to offer anything from £2000 to £50,000 (with some offering up to £100,000) to homeowners. The reason secured loan lenders require the applicant to be a homeowner is because they will secure the loan against the borrower’s property. This means that if the borrower was unable to pay and the loan falls into default; the lender has the right to repossess or put a charge on the property.

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Personal Loans
Sometimes referred to as unsecured loans; these loans work on the basis that the lender has not got the security of an asset such as a property to fall back on. This means that if the loan was to fall into default the lender is unable to repossess the property, although if taken to court they may be able to get a charge put on a property of the borrower is a homeowner. The regular personal loan provider will offer between £1,000 and £15,000 depending on the applicant’s credit history.

Payday Loans
Payday loans are short term loans, usually lasting no longer than a month just like same day guarantor loans. The idea of them is to free up the money you need now and pay it back as soon as you receive your wages. An example of when you would take out a payday loan would be if you are struggling to pay an important bill mid-month, perhaps Council Tax, you know you could pay it after payday but they are demanding the payment now.