Unsecured loans on easy-to-manage monthly payment
Is it enough to face financial mess over and over again? Are you unsure what to follow or not to get extra funding? Loanchester is here to help you! We have brought instant approval unsecured loans in the UK at the most affordable rates and monthly repayments.
These loans can be your go-to-source to stay financially strong and availing them can be your wise financial decision. We are here to simplify your financial complexities by offering tailor-made deals on unsecured loans online. Once getting approval, you can fulfil many purposes such as debt consolidation, car repairs and maintenance, bill payments, etc.
As among the responsible unsecured personal loan lenders, we provide the loan features in a way you can exploit them better. Therefore, you can now take charge of your personal finances, and of course, we are here to help you in every step.
Sit relaxed at your home, enjoy a cup of coffee, and get approval today only.
What is an unsecured loan?
Before going on to the features, let’s define unsecured loans meaning first. An unsecured loan is one of the types of a personal loan provided to aspirants seeking extra funding but no collateral to protect it. The loan approval usually comes based on individual credit history, monthly income, and loan repayment affordability. In contrast, a secured loan requires collateral like a borrower's home or vehicle.
Unsecured loans from a direct lender are particularly short-term loans where you can get the amount to borrow between £1000 and £25000. You can get that amount for a maximum duration of 84 months. You can even avail of these loans for 12 months, too.
There are a few unsecured loans examples, such as student loans, payday loans, emergency loans, loans for bad credit and many more.
Here is the detailed comparison of different types of unsecured loans:
| Loan type | Best uses | Loan amount | Loan term | Interest rate/APR | Credit Check | Features |
|---|---|---|---|---|---|---|
| Payday loans | Ideal for financial emergencies only | £100-£1000 | 1 month or next payday | Very high rate or APR | Soft credit check | Instant approval, online application |
| Emergency loans | For urgent financial needs or expenses | £1000-£5000 | 3-36 months | 48.9% APR (approximately) | Soft credit check | Quick fund transfer, multiple uses |
| Bad credit loans | Fulfilling emergency financial needs or improving credit score | £1000-£10000 | 6-60 months | 49.9% - 95.4% APR | No/soft credit check | Easy loan approval on monthly income or current affordability, not on credit score |
| Student loans | Tuition fees, or living expenses | According to the course fee or maintenance costs | 10-15 years | Not specific, as it is based on income | No credit check upfront | Repay according to the monthly earning |
Why would you want to take out an unsecured personal loan?
A secured loan can be a sensible choice if you want to purchase a new house or car or a large renovation. Of course, you get a lower interest rate. Still, a personal loan like unsecured loan has its own significance.
This loan is beneficial in many circumstances. However, you can use the funds for any purpose but lenders expect that you have genuine reason.
Here are the common reasons for which you may look for fast unsecured loans in the UK:
Manage urgent expenses: Many individuals want these loans to pay off expenses, such as weddings, holidays or purchasing a gadget. Collateral is not required to manage such costs. Therefore, unsecured loan interest rates may be higher. Still, we assure competitive rates for you.
Credit card debts: You must have facing financial disturbance with outstanding credit card balances. Getting an unsecured debt consolidation loan might open the door to merging those debts into a single loan. You will pay only to one lender rather than paying to multiple creditors.
Vehicle repair: Is your car breaking down? Are you finding it tough to manage vehicle repair costs? Do not worry because Loanchester provides easy access to unsecured loans. Get the approval on it and repair your car with no financial mess.
Small business purposes: We do not limit your use of loans. If you run a small business and want extra funds to buy inventory, you can seek unsecured business loans on affordable terms. However, your personal credit score should be good, and your business should ensure steady returns.
What are the benefits of unsecured loans for bad credit?
Credit score holds significance during the loan process. However, your credit history matters, but Loanchester also considers other criteria. For example, we also consider your monthly income, affordability, and credit score.
Given below are the benefits of unsecured personal loans for bad credit from direct lenders:
No restriction on using funds
When you apply for a secured loan, you get the funds for a specific purpose only. It means you have restrictions in using the loan amount. For example, a car loan can only be used for buying a car. Many lenders even put limitations on that car loan to be used for a new car purchase only.
On the other hand, an unsecured loan for a bad credit history can be used for any financial purpose. For instance, with these no-collateral loans, you can use the borrowed amount to consolidate your debts and buy new furniture.
Multiple unsecured loan types
Short term loans have the speciality of available in multiple formats. Similarly, unlike secured loans, these loans are available for various purposes. Therefore, you can get them in many formats. For example, if you face many difficulties due to increasing debts, you can approach us to get unsecured loans for debt consolidation despite bad credit.
You get the funds within 24 hours and consolidate all debts to live a burden-free financial life.
No-risk loans
These are no-collateral loans. Therefore, you are not obligated to put your asset as the loan collateral. It gives you a massive relief because you will not lose your assets if you miss the repayments or default. However, not repaying the loan can hurt your credit score. That is why you should carefully choose the loan amount and repayment term. Better is to go for affordable loans only.
Better options than credit cards
You will definitely find unsecured loans for fair credit more interest-friendly than credit cards. When you use your card, you must pay its bill with interest rates of around 20% p.a. On the other hand, personal loans have interest rates of approximately 10-15% p.a. At the same time, credit cards will increase your debts more, while unsecured loans can be utilised for consolidating multiple debts.
No hard credit check
A credit check is a mandatory process, but it will hurt your credit score if it is hard. As the responsible direct lender, we take care of your credit score by allowing soft credit check unsecured loans. These loans won’t hurt too much because we go through your credit history without impacting your scores. It means the scope will be there of loan chances.
No guarantor is required
There are no guarantor unsecured loans in the UK, which means you do not need anyone to be your guarantor while signing the loan agreement. However, the interest rate will be higher, and therefore, you should shop around for the best deal on unsecured loans without a guarantor.
Disadvantages of unsecured personal loans for bad credit
Do you think that unsecured personal loans for bad credit in the UK have only the advantages? Then you are wrong. There are also some disadvantages, and we are responsible for making you aware of them.
Higher interest rates: Compared to secured loans, you need to pay higher interest rates on this personal type of loan. The reason is apparent, i.e. no collateral is there to reduce the risk for the lender.
Defaulting will hurt your credit score: Since no asset is there to secure the loan amount, you must be extra careful of the loan repayments. There will be negative credit impact if missed.
May increase your debts: Unsecured loans on low credit can be applied online. Therefore, they are easily accessible by sitting at home. You may want to apply for them repeatedly. But it may add more to your pending debts.
How much will I have to repay on unsecured loans in the UK?
Comparing various loan deals is important to get the best term for an unsecured loan. Try to find a lender that can provide you with flexible unsecured loan terms, as it will become easier for you to repay according to your affordability.
Don't forget to use the loan calculator to estimate unsecured loan payments and total interest. Given below is an example of what is the total repayment for unsecured loans in the UK and the true cost according to your repayment capacity.
| How much can I borrow with unsecured loans in the UK? | Repayment Term (flexible unsecured loan terms) | Representative APR | Monthly loan Instalment | Total repayment amount |
|---|---|---|---|---|
| £1000 | 12 months | 29.9% | £97.36 | £1,168.32 |
| £3000 | 36 months | 19.9% | £112.2 | £4,032.72 |
| £5000 | 60 months | 13.9% | £115.19 | £6911.40 |
| £10000 | 60 months | 8.9% | £207.60 | £12,456 |
Things to consider before applying for unsecured private loans
There are a few things which you should ponder before applying for an unsecured personal loan. Our loan experts have explained some tips you can pursue while submitting your application at Loanchester.
- Comparing interest rates is a necessary process. You can use unsecured loans calculator to get the correct estimate of the loan amount and repayment at a particular interest rate.
- Selecting the loan amount needs a proper analysis of your current financial circumstances. Choose an affordable amount that you can smoothly repay from your monthly income.
- Another point to consider is the type of loan. Approach our experts or review our guide section to compare secured vs unsecured loans. Get complete information and then apply for a particular option.
- Check your eligibility to determine whether you can qualify for the loan. However, Loanchester has implied simple qualifying criteria that everyone can follow. Moreover, easy conditions are also there for those with poor credit scores.
Call us now and get the best unsecured loans in the UK
Your search for the best unsecured loans from a direct lender will end here. Loanchester can customise loan deals according to individual circumstances. This is our primary speciality that paves the way for offering affordable loans only.
Show your affordability and get unsecured personal loans on guaranteed approval online.
Make full use of our flexible repayment terms and enhance your credit score.
Our online loans can be applied anytime and from anywhere. We provide 24/7 assistance.
FAQS
Is it possible to get an unsecured loan in the UK with no credit check?
Loanchester cannot guarantee no credit check for instant unsecured loans in the UK. It may be a high-risk for fast-access seekers. Credit check is the part of our loan assessment policy, but we do this as a soft credit check. We always keep transparency about eligibility. It will benefit you in terms of no impact on your credit profile.
Can benefit claimants apply for unsecured personal loans?
Yes, the availability is there on unsecured loans for benefit claimants from the online lenders in the UK. They are ready to accept benefits like Universal Credit, Personal Independence Payment (PIP), and Employment and Support Allowance (ESA).
Can self-employed people get unsecured loans?
Yes, you can get self-employed unsecured loans in the UK. However, you need to show broader eligibility like proving your loan affordability with a business plan, annual return, good credit score and collateral, if required.
Are part-time workers eligible for unsecured loans?
Online lenders ensure the inclusivity of casual and flexible workers by offering them affordable loans. They offer unsecured loans for part-time workers in the UK, but they need to prove their repayment capacity. They will get a small loan to borrow for a shorter term with no need for collateral.
How fast can I receive money from an unsecured loan after approval in the UK?
Usually, unsecured payout time in the UK is within 24 hours. Online lenders won't take too much time reviewing the loan application, as no collateral is involved. They only need to analyse borrowers' affordability and monthly income to offer instant funding.
How to avoid credit score impact with unsecured loans?
It depends on how an individual handles the repayment terms mentioned in the loan agreements. For instance, if you miss repayments perpetually, it will negatively impact your credit score. Apart from that, multiple unsecured loan applications also hurt your credit score.
Which is better: secured or unsecured loan?
If an asset like a car or house backs a loan, it is a secured loan. During the default situation, lender can take the possession of that asset to get their lost amount. In an unsecured loan, the lender cannot do this because no collateral is there to repossess. Loanchester offers unsecured personal loans that you can get within 24 hours.
How do unsecured loans work?
Follow the below-mentioned unsecured loan application process and apply smoothly:
- Click on the ‘Apply Now’ button
- Fill out the available online form with given details
- Submit it and get an instant loan quote
- Receive same-day approval followed by fund transfer
Is guaranteed approval possible on unsecured private loans?
There are no 100% guaranteed unsecured loans in the UK until and unless the affordability of applicants is assured. You have to show us your loan repayment capacity and Loanchester is ready to approve your loan application. However, there are a few eligible conditions, which you have to fulfil such as stable monthly income and much improved recent financial performance to get unsecured loans on guaranteed approval and instant decision.