Whether you are new to borrowing or struggling to find an appropriate loan package, we can help you understand what options are available to make an informed decision. Bear in mind you will have to pay interest on what you borrow, which means that the longer the term of the loan the more you will pay in interest. You are also likely to pay fees and charges in connection with your loan.
Whichever loan you ask, the cost of borrowing depends on whether the loan facility is secured or not. If you opt to offer something as security (such as your home or a pledge on an investment or a bank account) to provide collateral, the bank will tend to charge you a lower rate of interest. The more liquid the security being offered the slimmer the rate of interest applicable to your personal loan. On the other hand, if you decide to apply for an unsecured loan, the granting of such facility will be based on your ability to effect the monthly repayments out of your disposable income, your track record with the bank, and any other good record of repaying any previous loans with any other bank.
Consequently, given that no security will be backing the amount borrowed, an unsecured loan will attract a higher rate of interest as it involves the bank in a higher credit risk than a secured loan.