If you have any sudden expense coming up and you are facing financial difficulty in managing the fund, then you might look for some sort of financial help to bear the expenses. There are many options available for you like borrowing from friends or family, taking a loan from banks, etc. But as it is widely known that taking a loan from a bank is a herculean task these days. Traditional banks and financial institutions have very stringent condition while providing loans to borrowers.
But there is nothing to worry about it. Still, there are many avenues that provide loans to people with a bad credit score. There are many direct lenders in Ireland who provide personal loans. These loans are available in two forms: Secured personal loans and unsecured personal loans in Ireland.
Here in this article, we will go through both the types of loans one by one.
Secured Personal Loans
These types of loans can be obtained by providing some sort of security or collateral to the lenders. These securities can be anything like your homes, car, valuable asset or property, etc. The reason behind providing the collateral is to compensate the loss if you fail to make the repayment of the loan.
Many times people take a loan and fail to repay the amount on time due to one or another reason. In this situation, a lender can take possession of the collateral what you have provided and sell those to recover their loss.
There is one advantage of secured loans and that is a lower rate of interest. Since you are keeping your valuable property as collateral, hence lenders charge low rate of interest while offering the loan.
Unsecured Personal Loans
As the name indicates it is just opposite of a secured loan. To get an unsecured loan, you don’t have to provide any collateral or security to the lenders. Here lenders are not concerned about your credit report. Their only concern is a good income proof to give them confidence that you can repay the loan on time.
Since you are getting the loan without any collateral or security, lenders tend to charge a higher rate of interest for this type of loan. The only reason behind this high rate of interest is the absence of any security. In the case of non-repayment of loan, lenders don’t have any way to recover their loss. Hence they charge a high rate of interest.
Quick and Fast Online Approval
Although getting an unsecured personal loan is not as easy as thought by many, still you get it through one of the online lenders. As discussed earlier, compared to traditional lenders these lenders have less stringent terms and conditions while providing loans. So, it is better to approach online lenders for this type of loan than sweating yourself out at the door of banks.
Also, these direct lenders are very fast in loan approval and processing because everything is done online. You just need to search an online lender who provides this type of loan, go through their terms and conditions carefully. You should research properly before committing to any lenders. Always go for the lender who offers lower interest rate and best terms and conditions. The most important thing is the repayment. Never forget to repay the loan on time. If you fail to do so then it will have a negative impact on your credit score.
Conclusively, it can be said that getting an unsecured loan during a financial crisis is not impossible now. With various lenders present in Ireland in the lending business, anybody can secure a loan even though they don’t have anything to keep as collateral.