While applying for a loan from a bank, it’s essential that you know certain information, both for personal awareness and so you can educate…
August 17, 2018
While applying for a loan from a bank, it’s essential that you know certain information, both for personal awareness and so you can educate other potential borrowers.
A loan may be considered as a sum of money advanced by one or more individuals, organizations and/or other entities to other individuals, organizations or entities to enable them meet certain planned or unplanned events. The borrower is often required to pay back the loan, usually along with interest charged over a stipulated period. Most of the time, the lender bears the risk that the borrower may not repay a loan even though this risk is often skillfully managed.
There are several types of loans given by various financial institutions and these may be Secured loans or unsecured loans.
Secured loans are protected by collateral that serve as a guarantee for the loan amount. Valuable assets are put up as collateral and these assets serve as security in case of a default. A borrower may consequently place a home or other property as leverage to guarantee that they will repay the loan at the agreed duration and the lender puts a lien on those assets until repayment is done. If the borrower defaults on the loan payments, the lender can claim the collateral and sell it to recoup the loss. This is why when you apply for a secured loan the lender will want to identify which of your valuable assets you plan to put up as collateral.
Unsecured loans on the other hand are loans that do not involve any assets as collateral or security. They are mostly personal loans, quick loans and short-term loan which have no guarantees attached to them. Such loans are usually given on the basis of a borrower’s credit record and financial position. As these loans are without collateral, some financial institutions do not venture into them and for those who do, the approval process for such unsecured loan are typically lengthy, but definitely not with CDL.
Some eligibility criteria considered before you can access unsecured loans of your preferred amount are your credit score, the authenticity of your employment and other documents applicable to the Know Your Customer (KYC) policy.
It is also advisable that while considering a loan facility you make sure the institution providing such a loan has Payment Protection Insurance. This ensures the principal repayment of your loan in the event of any unforeseen circumstances so that no burden is passed down to your Next of Kin. Credit Direct Limited has this adequately covered on all our loan packages. The family of a loan beneficiary receives an amount as part of this legitimate claim if the borrower dies before the loan is fully repaid and such a loan is also fully cancelled.
At Credit Direct we provide a variety of unsecured loans, (Quick Loans, Payday Loans, Collateral Free Loans, and Emergency Loans. We have a reputation for fast loans without collateral, quick turn around time and low interest rates…
Watch out for the 2nd Part in the coming week.
The number one non-bank digitally-led lender that provides financial solutions to millions of customers.
Copyright © Credit Direct Limited. Authorized and regulated by CBN.