Financial planning is a crucial decision in everyones life… We all try to balance our income and expenditures, but sometimes taking credit assistance becomes imperative. Broadly, loans can be categorised as mortgage, personal loans and commercial loans. Of all three, personal loans have the largest scope, as the span of human needs is immeasurable.

One can find an extensive range of personal loan products, based on human needs, in the UK credit market. Some of the most saleable ones are bad credit loans, business loans, car loans, career development loans, cosmetic surgery loans, debt consolidation loans, education loans, holiday loans, homeowner loans, home improvement loans and wedding loans.

These personal loans available in both secured and unsecured form, can be availed by any UK resident over 18 years of age, subject to basic credibility parameters. For secured personal loans, the basic parameters are past credit history, employment status, debt to income ratio and the value of the pledged collateral.

As secured personal loans offer maximum loan benefits, they are always the best option for those who are willing to offer an asset as collateral, i.e., for homeowners and property owners. As collateral protects the lenders loan amount, he facilitates the borrower with quick attention, high credit limit (normally starting from £5,000), competitive low interest rates (normally starting from 6.7%), flexible payback options, and negotiable loan terms and conditions.

The threat of collateral seizure – in the event of repeated defaults or non-repayment – and slow application approval process – due to property evaluation procedure – are inseparable from secured loan deals. Yet, secured personal loans, recommended for big monetary requirements, are a safe bet for all parties involved.

The market share of secured loans is more for the above-stated reasons. Moreover, borrowers are gradually realising the fact that secured loans are more cost-effective, as unsecured debts have high interest rates.