Different Categories of Loans in Ireland Loan Market
In today’s world where economic certainty is not guaranteed, the loan has become a very common part of our financial life. In the current situation, it is very difficult to find even a single person who has not taken a loan. Loans are the money which a person takes for a temporary monetary problem which needs to be rapid in certain duration.
Now, most of the people have taken multiple loans since the economic conditions are not favorable. The widespread services of the loans have given rise to many types of loans in Ireland
. The different types of loans have their own features and characteristic which makes it unique from other loans. The economic watchdog present in the country is the deciding authority behind the different types of loan products.
The different types of loans available actually focus on the purpose of the loan. The most popular types of loans contain car loan, home loan, personal loan, payday loan, student loan, debt consolidation loan, doorstep loan and so on. The lenders have also launched many sub types of these loans. These types of loans have a different rate of interest and repayment method.
Each type of loan has been designed as per the needs of the individual loan. In case of a special loan type like home loan, the repayment duration will be longer and the interest rate will be comparatively low.
The different types of loan can be divided into two parts: Secured Loan and Unsecured Loan.
- Secured Loans: The secured loans are the loan which is taken from the lender by providing collateral of your valuable property like home, car, etc. This type of loans seems more flexible because they are offered at a lower interest rate and longer repayment duration.The secured loans are less risk consuming for lenders because of the collateral provided by you. In case you are unable to repay the loan they can use your assets to make up their loss. The home mortgage, car loan, etc are some subtypes of secured loans.
- Unsecured Loans: These types of loans are provided without any collateral or security. The lenders have a risk of loss in this type of loans; hence they charge a high rate of interest while disbursing this type of loan. The borrowers don’t have many benefits in unsecured loans. It does not relieve the borrowers from the risk of losing their valuable property in case of default.
Even though the criteria for each loan will be different, some conditions can be common for any type of loan. Good credit record is one of such requirements.
Other Types of Loans
- No Credit Check Loans: Your credit score plays a big role in taking a loan. Many prime lenders like banks and credit unions prefer only those borrowers who have a good credit score. Traditional lenders hesitate to provide loans to those who have a poor credit score.
In this situation, direct lenders come to your rescue. They provide loans to even those borrowers who have less-than-perfect credit score without any credit check. Hence, no credit check loans are a suitable option for people with a low credit score.
- Loans for Unemployed: Unemployment is a very bad situation for anyone who has lost their job. It becomes really difficult for unemployed people to meet their daily expenses without any source of income. Handling unemployment and financial burden both at the same time can be challenging for a person. Though they get support from the government
that is inadequate for them. On top of that, many traditional lenders don’t prefer to provide any type of loan to unemployed because of any steady source of income.
Keeping this in mind, online lenders have designed a special loan for unemployed people for their convenience. Through this loan, they can manage their financial condition and focus on the job search.
Also, direct lenders charge an affordable rate of interest that will not put any burden on them. You should consider repaying the loan as soon as you get a job. Timely repayment will help you in future loans.
However, there are many online lenders like EveryHour Loans present in the market who provide loans to even those people who have bad credit. Due to cut-throat competition in the market, most of the lenders are ready to give loans at adjusted interest rates. Also, online lenders have made loan processing very easy. The intensive market search will help you with getting an affordable and suitable loan for you.