What is it?
Personal loans are an unsecured lending facility that can be used for almost any purpose such as home improvements or to buy a car. A personal loan is normally a fixed cost, fixed period loan of money to purchase any item the customer wants – including vehicles. This givescustomers an option to purchase any vehicle they want. The facility is widely offered by Banks, Building Societies, Direct Lenders and Finance Companies.
Advantages of Personal Loans
- A personal loan is an unsecured funding facility and can be used for almost any purpose.
- A personal loan is regulated under the Consumer Credit Act.
- The minimum and maximum loan amount is determined by the individual lender based on the risk they are prepared to bear.
- The loan amount can be settled at any time by the customer.
- No deposit is necessary from the customer, but a fee may be charged by the lender.
- The loan is paid over a fixed period of time (normally a maximum of 5 years).
- The customer immediately becomes the legal owner of the vehicle funded by a loan.
