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Unsecured loans

Unsecured loans, also known as personal loans, are supported only by the borrower’s creditworthiness, meaning the money isn’t borrowed against the value of one of your possessions.

What is an unsecured loan?

An unsecured loan is fairly straightforward, you will borrow the money from a lender over a certain time period and make regular repayments until the loan is fully paid back. A lender will evaluate your application based on your ability to repay. Lenders will look at several factors to help decide whether to approve your application.

  • Your credit history – Lenders check your borrowing history to see if you’ve managed to successfully pay off loans in the past.
  • Affordability – Lenders will consider your income and outgoings to make sure the loan repayments are affordable for you. This is known as an affordability assessment

As the loan isn’t secured against an asset, the interest rates tend to be higher because the lender doesn’t have any security should you fail to repay.

Advantages of an unsecured loan

Not only are unsecured personal loans widely available to a large proportion of people, they also offer the flexibility to choose the repayment period. Most borrowers will have fixed repayments for between one and five years. Some lenders also offer the option of a payment holiday for a couple of months at the beginning of the agreement.

Morses Club loans

Morses Club loans are a form of unsecured loan, delivered to your doorstep. Once you’ve completed your application, have been approved in principle and met with one of our friendly local Customer Service Representatives, you could have your money in a matter of days and your repayments are collected in person, from your home at a time and day to suit you. Alternatively, you can make repayments online via the Customer Portal.

Apply online and you can find out if you’ve been approved in principal for a Morses Club loan.