An unsecured personal loan is a loan that doesn’t require any type of collateral and is backed by a borrower’s creditworthiness and a signed contract or agreement. Unsecured loans differ from secured loans, which are backed by the equity in an asset – typically a house. Some other differences between an unsecured debt and a secured debt include:

• Pre-payment penalties: On an unsecured loan from The Source Financial, you can make extra loan payments or pay it off early and you won’t be charged any penalties

• Same-day: Since there is less paperwork involved with an unsecured loan, you could have access to your money the same day you apply

• No fees: You won’t be charged any application fees when you apply for an unsecured loan

An unsecured loan can be used to consolidate bills and debt, including credit card balances and loans. You can use it to pay off all your outstanding balances and combine your debt into one manageable payment. Since you can access your money in as little as one day with an unsecured loan, you can use it to pay for emergency expenses like home or car repairs.

Aside from these reasons, you can use an unsecured personal loan to cover any of life’s expenses, like managing home or family expenses, travel, weddings or something else altogether.

Yes – an unsecured loan may be used to describe the following borrowing options:

• Payday loan: A short-term loan intended to cover an immediate gap in your cashflow. People typically only borrow a few hundred or a few thousand dollars through a payday lender. If the debt is not paid back in the timeframe outlined in your contract, interest charges can accumulate quickly.

• Instalment loan: An unsecured loan that is paid back through regular payments, or instalments, on a set repayment schedule. The predictability of payments is helpful for anyone who benefits from a structured plan to pay back their debt.

• Line of credit: A type of revolving credit whereby borrowers can withdraw cash as needed and interest is charged until the balance is completely paid off. Typically, a minimum payment is required each month. If only the minimum payment is being made consistently, interest can build over time. A line of credit does not offer a set or pre-determined payment schedule aside from the minimum monthly payment.

The Source Financial’s unsecured instalment loans allow borrowers in the fair to good credit score range to access up to $25,000 at rates starting from 26.99% with no proof of homeownership required.

Apply for an unsecured loan from The Source Financial in three steps:

1. Apply online

   Enter how much you’re looking to borrow and complete a few simple details.

2. Connect with a lending specialist

   A lending specialist will be in touch to customize your loan details.

3. Receive funding

   Receive direct funding as early as same day for most loans.

Interested in an unsecured loan? Apply now in minutes to find out how much money you could borrow.

An unsecured loan is backed by a written agreement or contract. Lenders take on greater risk when lending out unsecured funds – if you fail to make payments on an unsecured loan and default on your loan, your lender is left with the loss. As a result, unsecured loans typically max out at lower loan amounts and have higher interest rates compared to secured loans. 

A secured loan is backed by an asset, like your house, giving your lender greater confidence that you’ll make loan payments on time. If you fail to make payments on a secured loan, your lender can technically assume ownership of your house. As a result, secured loans typically allow borrowers to access more money, and lower interest rates.

The Source Financial offers secured and unsecured personal loans that fit your needs and budget. Compare our loan products to find out which one is right for you.