Q1  What are the primary requirements for unsecured loan approval?

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.

Q2  What is creditworthiness and how it affects 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.

Q3  Can a poor credit borrower avail an unsecured loan?

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.

Q4  Is there any restriction on the pattern of spending the loan amount?

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.

Q5  How the repayment is made?

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

Q6  Can the loan amount be repaid early?

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

Q7  What happens if the borrower can't work or is made redundant?

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.

Q8  How to apply for unsecured loans?

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.

Q9  How much time the loan processing takes?

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.

Q10  Is the information provided in the application remains confidential?

Ans:  Yes completely. All applications are treated in the strictest confidence.

Q1  Who can apply for a bad credit loan?

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

Q2  What can the borrower use the loan for?

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.

Q3  What is credit rating and how it affects the loan approval?

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.

Q4  Can the borrower access his credit record?

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.

Q5  How to get a bad credit loan?

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

Q6  How much one can borrow under bad credit loan?

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.

Q7  Is the payable interest rate high?

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

Q8  How to apply for the bad credit loans?

Ans:  The borrowers should fill the free online loan quote available on the home page. Online loan application makes the loan processing fast and free from unnecessary paperwork.

Q9  What is the maximum limit of repayment?

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

Q10  How to get a lower interest loan plan?

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

Q1  What is a debt management plan?

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.

Q2  Is debt management plan different from debt consolidation loans?

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.

Q3  Is there any need for credit check?

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

Q4  How does debt management affect 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.

Q5  How the person can be assured of a reduced outgoing after availing the debt management plan?

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.

Q6  How long does the plan last?

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.

Q7  What will happen if the financial condition of the person changes during the period?

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.

Q8  If the person wants to discontinue the program, is there any penalty or charge?

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.

Q9  Why can't the concerned person negotiate with creditors on his own?

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.

Q10  Which loans come in the purview of debt management plan?

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

Q1  Can the personal loan be repaid earlier than the assigned period?

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

Q2  Are the personal loans the cheap loans?

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.

Q3  How fast is the loan processing?

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.

Q4  Is this loan option open to all?

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.

Q5  How does bad credit score affect loan availability?

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.

Q6  Is there any credit check before the loan approval?

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

Q7  How to apply for personal loans?

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

Q8  How confidential is the application?

Ans:  All personal loan applications are treated in the strictest confidence. The concerned borrower's bank, employer and so on will not be contacted without his or her permission.

Q9  Can the loan amount be spent for any purpose?

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

Q10  Is there any extra payment related to loan approval?

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.

Q1  What are the repayment terms of commercial loans?

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

Q2  What are the interest rates associated with commercial loans?

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.

Q3  Is 'business plan' a must for loan approval?

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

Q4  How credit rating affects the loan approval?

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

Q5  How much time is consumed in loan processing?

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.

Q6  How much is the maximum loan amount?

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

Q7  What costs are involved in commercial loans?

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

Q8  Is debt service coverage important for the approval of the commercial loan?

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.

Q9  Is there a penalty if the loan is paid earlier?

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

Q1  What can I use Bridging loan for?

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

Q2  What costs are involved with Bridging Loan?

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

Q3  What Type of security is required to avail these loans?

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

Q4  What is the interest rate associated with bridging loans?

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

Q5  Is there a charge for making the loan application?

Ans:  The online loan quote is free. Loan application does not need any extra charge.

Q6  Can borrowers with CCJ's and adverse credit avail these loans?

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

Q7  How long it takes to receive funds?

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

Q8  Can the borrower apply even if he has an existing mortgage?

Ans:  Second Charge Bridging Loan option is also available.

Q9  Can bridging loan be settled early?

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

Q1  Is it easy to get secured loans at an affordable term and condition?

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.

Q2  What is APR and how important is it?

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.

Q3  Is there any need to take Payment Protection?

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.

Q4  What if I can't maintain regularity in the repayments?

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.

Q5  What about the lengthy paperwork?

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

Q6  How long the loan processing take?

Ans:  The required time depends largely on how quickly you fill the free online loan application form. You should send in your documents as quickly as possible.

Q7  Is there any restriction on the use of loan amount?

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

Q8  What if the credit history is bad?

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.

Q9  How long is the repayment period?

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

Q10  Is there any hidden charge associated with secured loans?

Ans:  No, there are no broker fees on the advertised plans and you do not pay anything extra.