If you are not a homeowner, or have no other collateral, you will have to opt for an unsecured loan.

These are quick to arrange and are less risky as you will not lose your home if you are unable to repay the loan. But because there is no guarantee that the lender will get their money back, the interest rates charged are usually higher than those attached to secured loans.

When you apply for an unsecured loan, the lender will check your credit history. Although the loan is unsecured, some lenders will still insist on you being a homeowner as it gives them more confidence that you will not default.