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Understanding the Basics of No Credit Check Installment Loans

No Credit Check

The important step in the lending process undertaken between the lender and the borrower is to check the credit history of the latter. In this aspect, it can be said that most borrowers dislike credit check. The reason is that they don�t want to reveal their financial details to unknown persons. However, lenders insist on the same as they have their reasons. This procedure is skipped in no credit check installment loans. Therefore without having a clear picture about the borrower�s position in the credit market as well as his repayment reputation, the lender is at a great risk. But they still go ahead with it because of the lure of getting high interest.

Secured and Unsecured Loans

Regarding no credit check installment loans, there are two types. One is the secured loan and the other is the unsecured loan. In case of secured loan you have to provide collateral. Generally, strict conditions are imposed by the lender on the borrower to avail this loan without collateral and credit check. It is quite difficult to get the secured loan. You have to fulfill certain conditions laid down by the lender. One is that, you must have continuous employment and there is a minimum salary limit. However, the loan amount provided in this case will be proportionate to the salary and hence can be considered as small. For unemployed borrowers providing sufficient collateral is a must.

Actually secured loan can be defined as a loan that is provided on the basis of collateral provided. In case you default or fail to repay, the lender to recover his loan amount will take possession of your collateral. The loan amount that you will receive on providing collateral will be 70% of its value. The interest rate is also high and therefore you should utilize the said amount judiciously. Keep in mind that there is heavy penalty on default and also low tolerance limit due to high risk factor. On the positive side, you receive money right on time and if your repayment is prompt then you can really better your credit history.

Coming to the unsecured loan scheme, its terms and conditions are simple and manageable. It is a short term loan and you can avail substantial funds. As in the case of direct lender only secured loans, unsecured loans also have to be repaid within the specified time duration. Being unsecured in nature, you are not required to provide collateral. The non-requirement for collateral does however lead to high interest rates. You can seek loan amounts up to �25000 under this loan scheme. The eligibility conditions are similar to what you are asked to provide under the secured loan scheme. You should be 18 years plus, have a fixed source of regular income and a checking account that is active for the last six months. There is no paperwork involved and with a hassle-free approval procedure, you can get your amount within hours or at the most within one working day.

Conclusion

Both these loans are online loans hence you should do a proper research on the internet to get the best possible deal.