Alternatives: Guarantor Loans alternatives in the UK
Global economy has seen many changes in the past few decades. Some of the world biggest economies have seen downfall and some of the smallest has come up with the innovation and the rapid increase in their economies. The situation has also affected the people in every corner and they have been thriving to meet their finance needs as well. People of UK have also been inclined to take various kinds of loans to meet their general and even the emergency needs.
The lending market of UK has come up with various and different forms of loan and quick money options. Depending upon the needs and the eligibility; one can easily get the loan. However it is important to note that no everyone in need of loan is eligible to get a loan as each and every financial institution and the bank has strict criteria for lending the amount. Apart from the Guarantor Loan where the tenure is slightly longer and the credit history is also checked the mandatory option is to have a person who can guarantee you while sanctioning in any loan. Some of the options for the loans are as followed:
- Personal Loans: It is the most common form of unsecure loan in UK. The tenure for such kind of loan is 1 to 5 years at maximum. Personal loans are designed to meet the personal needs of the borrower and that is the reason they have high interest rates as well. Furthermore a person has to follow the banks protocols with necessary documentation and the long processing time with the hassle of credit history checks as well.
- Mortgage Loan: Very common kind of secured loan where the property or house is given as a guarantee for the loan and in case of non-payment bank has the authority to compensate their loan amount.
- Logbook loan: The most widely accepted loan in UK; which serves as a collateral method against the vehicle of a person is known as logbook loan. Logbook loan is considered as quick cash where no credit history check is required. The loan is processed in a 24 hours time and very little documentation is required. However this loan has potential fear of the asset loss as in case of failure of repayment the car can be taken by the lender and no case can be filled against the company. Visit LogbookCalculator.Com for more info.
- Payday Loan: this is a category of relatively smaller loan, usually $500 or less, whereas the duration of this kind of loan is only for a period of 1-2 weeks. In such kind of loans the purpose is to fulfill the emergency needs and as well as a person can take it on many occasions. However the APR is very high and the loan repayment might be double as the actual amount. Borrower also has to go through the process of credit checks and affordability checks to ensure that they can repay and there is no risk attached against the lending amount.