Rates for Unsecured Loans

To know which one is the best loan for your business or your expenses, you need to know different aspects, like the interest rate—among others.

In this way, you will be making a well-informed and thought decision of the best loan for your business.

The interest rate of the loans depends in also the type of it.

If you go for a secured loan, you won’t have to pay a high-interest rate for the loan. Instead, you will give collateral as a guaranty for the lender.

You still need to pay interests, but not as much as other loan options.

However, unsecured loans, which are the contra part of secured ones, have higher interest rates, but you don’t have to give collateral or assets to the lender

The interest rates of a loan range from 5% and 10% when it comes to secured loans.

For unsecured loans, the rates range from 10% to 32% most of the time.

The range or rates of the loan will depend on different aspects.

Mostly, in the loan amount or limit, how long you will take to pay it back, your credit score and credit history.

Therefore, considering aspects like these, every business and individual should be able to find the right source and loan option.

Unsecured loans are harder to access since not too many lenders are willing to give them as a loan option—most of them prefer to go for secured loans, especially for large loan amounts—.

Our company, Business Funding Team, offers unsecured loans for businesses and individuals.

We are aware of the risk of lending or offering this type of loan, but we want to allow people to have access to them without worrying too much about requirements and giving collateral.

Besides, we have our ways of making sure that we will get the payback for the loan without resorting to collateral.

However, we want our clients to meet certain requirements and qualifications that are not as demanding as other lenders.

We are sure that you will be able to find the best deal with us.

The average range of loan rates 

The loan rates vary according to the lender and the aspects previously mentioned, which makes it hard to come up with an average range. However, something that characterizes this type of loan is that it usually has the highest rates. Since borrowers are not giving collateral or some kind of asset, interest rates from almost every lender or source tend to increase to “cover” part of this no collateral condition.

Therefore, you will find a higher average rate in unsecured loans compared to secured ones. Now, the average rate of unsecured loans ranges from 10% to 28%. This is considered to be high since secured loan rates go from 5% to 15%. But as mentioned before, you need to give collateral to access the loan.

Also, you need to consider that the interest rates you will get for your loan depend in also your credit history and score, you can have a lower or higher one. Therefore, it is important to consider every aspect to come up with a clearer average rate—in your case—. Especially, the amount of the loan you will get from the source through an unsecured one.

Most individuals and businesses get an interest rate of 12%. People who can access lower interest score is usually because they have a good credit score. Credit score ranges from 300 to 850, being 680-719 a good one while 720-850 excellent credit. People who have a poor score are the ones who usually access loans with a high-interest rate—around 17% to 30%—.

This makes a huge difference when you’re applying for a loan—especially an unsecured one. Most businesses and individuals find themselves limited by this, but credit scores can be improved. Therefore, you will need to improve it if you want to have higher chances or opportunities to access a loan at a lower rate.

How-to get an unsecured loan with a low-interest rate

You will have to research properly to come up with a lender or source that also offer low-interest rates. Of course, keeping in mind the previous aspects is also important to get an unsecured loan in the first place. If you are going to apply for an unsecured loan, try to find a lender that also offers several options about it.

Most of the time, banks are not the first option for individuals to apply for a loan since the interest rate tends to be one of the highest, especially for unsecured loans. Therefore, consider accessing loans from lenders like investors, funding companies, SBA loans and other options besides a bank. When doing this, also analyze the requirements and qualifications of each one of them to determine the best lender and option for you.

Making sure that you meet them is the most important part of being able to access this type of loan. However, since all the qualifications tend to vary according to the lender, you will have to go through a long process.

Where to get an unsecured loan with a low-interest rate?

If you are looking for a good lender that can give you access to unsecured loans without having to meet many qualifications nor worry about high-interest rates, our company, Business Funding Team has been offering them for several years. We are a funding and loan company without too many requirements for either individuals or businesses. We want to allow people to access unsecured loans without going through a long process of just requirements.

We know how hard it is to access unsecured loans and that is why we wanted to request fewer qualifications and conditions, but that are also influential and important at the moment that people apply for our loans. That being said, we have different rates according to your qualifications and finance situation. We do care about your credit score and history, but we are not as demanding as other lenders with them. You can access our unsecured loans by visiting our website and giving us a call.

You’re welcome to visit our offices as well and know more about our conditions and terms.