Loan Calculator - Cheap Unsecured Loans

Use a loan calculator to get a good deal on a personal loan.

What is a loan agreement?

The definition of a loan is a kind of financial transaction where one party who is the lender of the money, will agree to borrow money to another party, the consumer, a specific amount of money. The consumer agrees to pay back the money in full with additional charges for borrowing the money called interest rates. Terms and conditions will vary from lender to lender, but this is a contract the borrower must adhere to and make all repayments under the loan agreement. Lenders can add penalties for late or missed payments under the contract.

What type of Loans are there?

There are many types of loans that a consumer can apply for but the main two are a secured loan and an unsecured personal loan. A secured loan is where the lender will ask for an asset to be sold if the loan cannot be paid; most secured loans are where you will have to put your home up as collateral. A secured loan is used for larger loans for home improvements such as extensions to your home.

An unsecured personal loan is where the consumer can really promises to pay back the full amount of money to the borrower in the allotted period of time. This is the most common type of loan for individuals who want to borrow money to purchase a new car, holiday in the sun or some other personal use. People consolidate their debt as well and call these loans debt consolidation loans. This is where they pay off all their unsecured debt with a personal loan, and should save money by not incurring any more interest on their credit card, store card or loan.

There are some other kinds a loans that consumers can arrange, one example are bad credit loans. This kind of loan is a product designed for individuals who have a bad credit history. The interest rates are much higher for borrowing money, because this type of consumer is a higher risk of not paying back the money.

The responsibility of the consumer is to payback the loan and there are penalties if the consumer does not, financial penalties.

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