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"Unsecured" loans..

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  • 06-10-2006 10:51pm
    #1
    xha1r
    Closed Accounts Posts: 311 ✭✭


    Hello.

    I've seen a few ads for both business and personal loans which mention they are "unsecured". Surely that doesn't mean what it suggests?

    And stop calling me Shirley...


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    #2
    Dutz
    Closed Accounts Posts: 102 ✭✭Dutz


    xha1r wrote:
    Hello.

    I've seen a few ads for both business and personal loans which mention they are "unsecured". Surely that doesn't mean what it suggests?

    And stop calling me Shirley...




    UNSEURED LOANS BASICALLY MEAN YOU DONT HAVE A HOUSE TO BACK UP AS COLATERAL . . . SO YES IT IS WAT IT SUGGESTS. . . . WAT DID YU THINK IT MEANT?


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    #3
    Ruu_Old
    Closed Accounts Posts: 36,634 ✭✭✭✭Ruu_Old


    It is based on the borrowers credit rather than collateral I think. The interest rate will be higher because the risk for the lender is higher.


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    #4
    xha1r
    Closed Accounts Posts: 311 ✭✭xha1r


    Calm down on the capitals there mate...

    What I'm asking is if a limited company were to borrow €25,000 based on projected, and realistic first year earnings of €40,000. If that didn't happen, and it turned out the comapny would be unable to repay the loan, would the outstanding amount be covered by the companies limited liability?


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    #5
    DublinWriter
    Registered Users Posts: 9,557 ✭✭✭DublinWriter


    xha1r wrote:
    would the outstanding amount be covered by the companies limited liability?
    Yes, but default on the loan and the company would get a very negative credit rating and probably wouldn't even be let open up a deposit account any time soon.


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