If you need money from a personal loan, choosing the right cash loan to suit your needs can be a daunting task - there's just so many loan providers offering easy loans.
The best way to go about making a choice is to make sure you're fully informed. What does all that jargon mean? Well two terms that you will hear a lot of are 'secured loans' and 'unsecured loans".
Unsecured loans are lines of credit that can range anywhere from $100 to $40 000. Of course it depends which small loans provider you choose and what your personal circumstances are as to how much you will be eligible for.
Like the loans amount, the time that you pay it off in is also a variable factor. It can be paid off in as little as one week, to as long as 5 years (approximately). The fact that they are an unsecured loan means that no personal assets are required to bind the agreement. However, this does not meant that failure to pay will not have any serious consequences.
As a general rule, unsecured loans are easier and faster to apply for than secured loans, but can often be held up, or you may not be eligible for some companies loans at all due to a poor credit history.
A good example of an unsecured personal loan is a bond loan, or even a payday cash loan. Payday loans are becoming increasingly popular in such countries as America, England, and of course, Australia. A number of cash loan providers exist in Australia, some include a completely online loan service which enables them to offer instant cash loans 24/7 to its members.
Now onto secured loans.
This type of loan is usually for a larger amount of money than an unsecured loan. A prime example of a secured loan is a mortgage - a large amount of money, most often in the 'hundreds of thousands' range. When you get a mortgage you borrow it against the value of your property.
You can also get smaller secured loans, where personal assets are used as collateral. So if you miss payments and the cash loan provider is forced to take action, the assets you use as security may be repossessed by the provider.
Hire Purchase (HP) is also considered a secured loan, as technically you do not own the item you are hire-purchasing until you have made your last payment. If you fail to make a payment, then the item is taken away.
So which type of loan is right for you?