What are the advantages and disadvantages of personal loans

We know that now a day we can take loans any time when ever we want. Almost every one is taking loans so it is no longer a matter of financial crises.

Let us consider what are the advantages and disadvantages of personal loans that UK government is following.

Advantages
• Swift awareness, as security guarantees reimbursement
• Sky-scraping credit collection – normally between £5,000 and 240,000
• Very little interest rates – the range may vary from 6.7% to 19.9% (depending on the available equity)
• Numerous rate strategy – fixed/uneven/inexpensive/capped/variable
• There are many ways of repayment – capital/interest/part payment like partly interest and partly capital.
• Flexible loan clauses like delayed compensation up to 6 months, refund holiday and accelerated refund.
Disadvantages

• Customer’s restriction – this credit is available for homeowners and also to those who owns a property.
• The approval procedure is very slow – because of property assessment procedure
• Recovery threat – in case the borrower could not pay in time.

A near survey has been made of the advantages and disadvantages of secured kind of personal loans and taking into consideration that this type is just appropriate for huge monetary requirement and also because it is suitable for an unfavorable credit holder and most probably it is the only other way for those who have been deprived of an unsecured loan.