Ans: As unsecured loans are provided without any security, your credit worthiness is the most vital factor. The lender wants to make sure that you will have a steady flow of income during the repayment period. Your UK citizenship and age (above 18) are other important factors for loan approval.

Ans:Creditworthiness implies a good past credit track record. It is reflected in your credit score. When your credit score is good, loan approval is faster and the payable rate of interest is lower. But, if you are suffering from poor credit score, the rate of interest is higher.

Ans:Yes. Credit rating affects the loan terms and conditions but not the approval. Bad credit borrowers are offered loan plans at a higher rate of interest.

Ans:No. the borrower is free to spend the loan amount according to his wishes. The lenders are least bothered about it. But, the purpose of borrowing should be legally correct.

Ans:Repayment of unsecured loans is done through easy monthly installments. The repayment period has the maximum time limit of 10 years.

Ans:Yes, you can, but with an early payment penalty. The penalty may be one or two month's interest.

Ans:Lenders offer and recommend optional accident, sickness and redundancy cover to give you complete peace of mind. Life assurance is also available and some plans offer this free.

Ans:Both online and offline methods of application are available. But you are advised to go for the online mode to make the loan processing free.

Ans:The loan processing is faster due to the absence of property valuation. To make the loan processing really fast, you should provide accurate information about your financial status and personal details.

Ans:All UK residents suffering from bad credit score can apply for bad credit loans. The borrower must be above 18 years of age.

Ans:Lenders do not place restrictions on what you can use your loan for. The loan amount can be used for home renovation, holidaying, purchasing new car - maybe even consolidation of your existing, expensive debt into a single, more affordable payment. You are free to use your loan in the way it suits you, so long as it's legal.

Ans:Credit scoring is not an exact science, different lenders have different systems to assess your past credit behaviour. If your past credit record is good, the loan approval is easy otherwise it is time consuming.

Ans:Yes, you can have a copy of your credit scores and evaluate your credit worthiness. The credit reference agencies provide you a copy of the details and charge a nominal fee for it.

Ans:Bad credit loans are available against the equity of your home and are generally secured in nature.

Ans:The loan amount is decided according to the equity of the pledged security. equity is calculated by deducting the loan burden(against that particular security) from the market value of home.

Ans:Yes. The payable interest rate is little bit higher as the borrower's past credit behaviour is not upto mark.

Ans:As these loans are secured in nature, the repayment period can be extended upto 20 years.

Ans:The bad credit loans generally come with higher interest rate. You can get an affordable loan plan if you compare at different lenders.

Ans:Debt management plan is an informal agreement designed especially for the people struggling to meet their monthly debt repayments. This plan offers the opportunity to make a single more affordable monthly payment.

Ans:Debt management plan is not solely a loan option. Expert financial advice suiting your financial status is a vital part of debt management plan.

Ans:No. More is the credit search, faster is the declination in credit score. Debt management help is aimed at improving your credit rating.

Ans:Debt management plans reduce your overall debt burden and monthly installment. As the monthly outgoing is reduced, you can maintain regularity in repayment. Regular payment of monthly instalment has a positive impact on credit score.

Ans:The repayment pattern is agreed between the concerned person and the debt manager in advance. The repayment pattern is based on the information the person have supplied and takes into account of all his or her financial status. Hence, the amount of reduction is crystal clear from the date of inception of debt management plan.

Ans:The tenure of the debt management plan depends upon your credit burden and your current financial status (source of income and affordability). Indication regarding the likely length of the plan is provided in the beginning.

Ans:Any change or fluctuation in the financial status should be informed to the debt management company. Depending on the changed situation a revised repayment plan is prepared after negotiation with creditors.

Ans:No. There is no penalty or extra charge for discontinuing Debt Management plan. But, the person should inform it with a prior written notice. The prior notice is required to inform creditors and ensure a smooth transition.

Ans:There is no such restriction and the person can negotiate with creditors directly. But the lack of time and apprehensions of straining the relationship strongly put forth the option of approaching the lenders through an intermediary.

Ans:Generally the debt management plan deal with the unsecured loans and credit card bills.

Ans:Yes, but with an early payment penalty. The penalty may cost you 1-2 month's interest.

Ans:Honestly, there is no particular financial tool called cheap loans. When the personal loan comes with a lower interest rate and easy repayment option, it is called the cheap loan plan.

Ans:The loan processing takes the least possible time. You can make it really fast by applying online and providing the necessary documents on time.

Ans:Yes, these loan plans can be availed by all UK citizens. The conditions for loan application are the citizenship of the UK and age above 18 years.

Ans:Poor credit score has an adverse effect on loan approval but it does not mean a refusal. The bad credit borrowers are offered loans at a higher rate of interest.

Ans:Yes, the lenders need a credit check to assess your creditworthiness.

Ans:Personal loans can applied online. The borrower can fill the free online loan quote and remain free from burdensome paper work.

Ans:Yes, the borrower is free to spend the loan amount according to his wish.

Ans:The charges for processing differ from lender to lender. But the competition in the UK financial market has made the processing fee structure competitive.

Ans:The repayment term is planned to suit your circumstances. The repayment period can be settled between 20-25years.

Ans:The rate of interest hugely depends upon the value of the pledged security and your existing debt burden. Competitive interest rate is associated with the commercial loans.

Ans:No, there is no such obligation. Lenders rely on a freehold property valuation and lend against that.

Ans:Credit score has an impact on every aspect of commercial loans. Good credit score leads to a better term and condition.

Ans:As, these loans involve property valuation loan processing needs some time. You can make the time gap shorter by availing the E-application option.

Ans:The borrowing amount may be upto 80%of the equity of security. The credit crunch has reduced the amount from 100%to 20%.

Ans:Valuation fee, Bank arrangement fee, Land registry fees, Stamp duty and legal charges are to be borne by the borrower.

Ans:Yes, debt service coverage is one of the key factors of commercial loan approval. Debt service coverage is defined as the ratio of cash available (after all property expenses) for loan payments to the loan payment.

Ans:Most commercial loans come with a "Pre-pay Penalty'', if the loan amount is paid off in full or prior to the Term outlined in the loan documents

Ans:It can be used for almost all real estate deals.

Ans:A property valuation fee is payable. Legal fees will be added to the loan amount.

Ans:These loans are available against all types of residential, commercial and semi - commercial properties.

Ans:These loans generally come with a higher interest rate. Interest rate is calculated monthly.

Ans:Yes, but they have to pay a higher rate of interest.

Ans:The lending process is now quicker due to internet. You can avail these loans within the least possible time.

Ans:Second Charge Bridging Loan option is also available.

Ans:Yes, you can repay early with an early payment penalty.

Ans:Secured loans are much easier to obtain compared to the loans without security. This is because the lender assured of his investment. Your home provides protection in the event of failure to repay the debt.

Ans:The APR (Annual Percentage Rate) is a general guide which shows how much you repay on your secured loan. It is a good way of comparing the value of loan.

Ans:Payment Protection option should be availed. You can insure your payments. By doing this you can make payments if you lose your income due to accident, sickness or unemployment.

Ans:The repayment pattern is designed in such a way that you can afford the repayment. A range of insurance products are also offered to cover you if your financial circumstances change.

Ans:Lengthy paper work is now simply a myth. E-lending has made the loan application and processing free from time consuming paperwork.

Ans:No. you can spend the loan for almost anything. Lenders do not restrict what you can use the money for.

Ans:Lenders are least concerned about your bad credit history as the loan amount is secured. The poor credit score at worst increase the rate of interest.

Ans:These loan plans are offered for a longer term. Repayment period may vary between 3-25 years.