According to a latest study, the UK people are amongst the biggest borrowers in the world. Of all loans in UK, education loans and wedding loans are most popular.
The cost of education is at an all time high... A recent FSA survey highlighted that one out of five students drop out of courses due to financial difficulty. Hence, more and more students are taking up education loans for their academic ambitions. Typically, these loans cover the tuition fees and miscellaneous living expenses.
The most favourable feature of education loans is that the repayment schedule starts when the borrower starts earning. As the possibility of a student having spare money is less, lenders usually offer these loans at low APR and flexible payback terms.
Wedding is usually the most important event in a person’s life and most prefer to celebrate the days associated with the ‘big day’ in an expansive way. Wedding expenditures in UK are rising at a rate of 10% per year. According to the latest statistics, the average cost of a wedding in UK is approximately £17,000.
It is not possible for everyone to shell-out that kind of sum in one go. In addition, the tradition of parents funding the wedding is on a decline. Hence, more and more prospective couples are exploring wedding finance options. These loans make sure that infinite wedding expenses do not eclipse ones wedding plans.
Like most UK loans, education and wedding loans too can be categorised as:
Secured loans – for people who need a large amount and are willing to offer their asset as security
Unsecured loans – for people who have an critical or brief monetary requirement and are unwilling or unable to offer collateral
Bad credit loans – for people who are going through an unstable financial phase and wish to bring their finances back on track
UK loans are any purpose loans, as they serve numerous purposes. However, loans for education and wedding are most common.
Please note: For a trouble-free credit shopping, one must have a clear idea of his financial requirement, past fiscal standing and future payback capacity.
By: Anaya Erika