Consumer loans are also known as unsecured personal loans. This means you do not need to give any form of collateral as a guarantee or assets as a security when you apply for an unsecured loan. Many people also use an unsecured consumer loan for major expenses such as credit card debt consolidation, medical bills, and car repairs or maintenance. These kinds of personal loans can be difficult to get from regular banks or other lending institutions and even harder to qualify for if you are trying to get an unsecured personal loan through a bank or other lender.
When you need cash and you do not have assets of value that you can put up as collateral you need to look at other options to borrow money that do not require collateral. Unsecured consumer loans are available to almost everyone who applies for them. There are lenders that offer these types of personal loans but they usually charge very high interest rates and monthly payments. The advantage of an unsecured loan is that you can still borrow a lot of money and you can pay the loan back over a long period of time with regular, on-time payments that don’t break the bank.
If you need to borrow a large amount of money over a long period of time it would be best to look into a secured consumer loans instead. With secured consumer loans you will usually have a fixed interest rate and you will only have to pay a small amount as interest each month. The interest rate will stay at this rate for the entire life of the loan. With unsecured consumer loans you will generally be given a lower interest rate because there is no security needed. However, the total amount that you are allowed to borrow will be much less than it would be with a secured loan and your monthly payment will be higher.