Instant Unsecured Loans – Super Fast Collateral Free Loans

Instant unsecured loans are loans available that do not need collateral which makes them super fast to apply for and approve. There is no property valuation work to be completed and the cost is less to process these loans as well. Applicants simply fill in an unsecured loan application form at a bank or you can do this yourself online. Actually the lending officer will fill in the application at the bank for you using their own online system based on information you provide them and then they will print a copy for you to sign. It is at this point that they either tell you they can approve the loan, they need to make adjustments to the loan or they tell you that your credit is just not sufficient to be approved.

For many people who really need the money, this can be an anxious time while they sit there in front of the bank manager waiting for them to make a decision regarding their loan application. If the lender does not approve their loan, it is also quite embarrassing as well for both parties, because most people will feel that somehow they are just not good enough or they have failed in some manner. The lender is embarrassed as well and really does not want to have this kind of conversation.

This is one of the reasons that many people will go the online route since they can save a lot of time by avoiding an appointment with a loan manager and they do not have to face the uncomfortable experience of rejection in person, should their loan not be approved. There is no need to take time off work, to travel to the loan managers office were you need to wait until they are ready to meet with you. The writer has had this experience personally were we even had an appointment and then had to wait half an hour to see the loan manager. By the time we did meet with him, I was so furious that I did not really care if he approved the unsecured loan or not. What a total waste of time.

Why is a Super Fast Collateral Free Loan More Expensive

A lot of people have this question including the writer. Why is an instant unsecured loan more expensive than other types of loans including those loans that are secured? Secured loans have collateral that is provided which must be appraised and approved. This involves more time and expense for the appraisal, all of which costs money. Secured loans tend to have lower interest rates than unsecured loans for the simple reasons that the lenders feel there is more risk with unsecured loans and they need to recover their losses.

So guess what, the customers who pay their loans on time and in full get to pay for those people who do not meet their commitments. Unsecured loan interest rates will almost always be higher than unsecured loan interest rates for this simple reason even after taking into account the added fees for appraisal, legal fees to register the loan and processing costs for a longer term loan and for one that is a large amount. Small unsecured loans, even though you are paying a higher interest rate simply do not save you enough money to make a secured loan worthwhile.

The lenders feel that there is more risk on average with instant unsecured loans and charge more for these loans than they do for loans that have collateral. Larger loans for items such as cars are almost always secured with the car being the security for the loan. Since this is usually a rather large amount of money, it only makes sense for both parties to go the secured route.

Applying for Instant Unsecured Loans

Consumers can apply online for unsecured loans and even be quoted rates and terms for these loans online. Even the major banks allow you to fill in an application now online which saves a lot of time and allows consumers to easily compare rates and terms. You save time and money by not having to visit several offices and you can select the best interest rate all from the comfort of your desk at home. At some point in the process you will have to scan and send copies of financial information to the financial institution you are dealing with. They may want a copy of your last month’s bank statement, perhaps a pay stub and proof of residence. This is easy to do and can all be completed by email. Final approval can be arranged though a phone call and you have your instant unsecured loan approved.

Should a Broker be Used to Find an Unsecured Loan

Brokers provide an excellent financial service that many consumers are just not aware of. Their job is to be aware of the rates and terms that lenders are currently offering so they can bring clients to the lenders that are offering the most competitive rates and terms for the types of loans that consumers are looking for.

They also do much of the work that the lender would normally have to do. In other words they prequalify the borrower using the forms that the lender has provided and the guidelines that the lender has provided. By taking this approach, the broker has saved the lender a good deal of work and they can focus on approving more loans as a result.

The broker will take you through all of the same information that the lender would have asked for and then the broker will submit your application to a lender that he or she knows is lending money at that time at the most competitive rates and terms available. Everyone wins in this situation since the borrower saves money by paying a lower interest rate, the lender gets a prequalified client that only takes a few minutes to review and approve and the broker gets paid a finder’s fee for bringing the client to the lender. The borrower does not pay the broker in most cases. It is the lender that will be paying the brokers fee.

Some consumers will compare the rates and terms that brokers offer them with loans that they could have been offered by their local bank. This is really just a final test to make sure that they are in fact receiving the best rate and terms for their unsecured loan. It never hurts to compare prices and make sure that you are in fact getting the best deal available.