There are all sorts of loans, and just as many people who need to borrow in the shape of some loan or the other..Loans can be for both personal and commercial purposes and are mainly of two sorts which are secured and unsecured loans.
Unsecured loans are loans that apply to an individual, and that as their name implies need no security of any kind.
While unsecured loans can apply to private individuals, unsecured loans will never be granted to businesses as they need to be secured.
This means that even if a business makes healthy profits but works out of rented premises, it is very difficult for a current owner to get an unsecured loan for the expansion of his company. In the very same way it would be impossible for any one to get a loan to purchase that firm if it was for sale
If buying a business, a deposit of normally at least 30% must be offered to enable the lender to believe that the persons heart , soul and dedication will be there 100%.
It is much easier to stop making payments to a loan if it is unsecured loans, and it is for this reason that the under writing for unsecured loans is strict
People can use unsecured loans for several things such as debt consolidation but it is difficult to get unsecured debt consolidation loans.
Also the rate for unsecured consolidation loans may be as high as to defeat the purpose of debt consolidation. This means that the interest rate may not be any better than that of the credit cards, etc. that it is replacing and as such no savings would be made.
If someone owns his home there is no need for estimates for home improvements or proof for the use for any purpose of they opt for a remortgage or a secured loan that are low interest homeowner loans that can be used for most things.
If you own your home there is absolutely no need to borrow in any other way other than secured loans and remortgages as they have so many uses, many of which can afford you a great deal of joy.
We have of course to clarify that they cannot be used for any illegal purpose.