Life can send challenges that require extra financial resources. Unexpected medical bills, house repairs, and broken appliances are all things that interfere with financial stability. When things like this present in your life, it can help to take out a loan to cover the extra expenses. There are several types of personal loans that Bonsai Finance can help you find. One of the most popular types of monetary assistance we help with are unsecured personal loans.

How Unsecured Personal Loans work

These loans are a great choice for individuals who have sufficient income, but imperfect credit. Personal loans often rely on collateral to back up the loan. Unsecured personal loans accept proof of income as a prerequisite. This helps borrowers feel more comfortable since they do not have to be concerned about losing their care or other source of collateral. For qualifying individuals, unsecured loans can be the least complicated option.


A lower amount of income does not automatically disqualify you from receiving a loan. The lender, however, may need added reassurance that payments are going to be made regularly. A cosigner can often be added to the loan agreement for security purposes. If you fail to pay back the loan, the cosigner becomes responsible for the repayment. In this case, both incomes are calculated to make the final decision.

Interest Rates

Lenders feel that they are taking more of a risk when they approve unsecured personal loans. Without collateral to back up the loan, they make the decision solely on your past payment and account histories. There is often a higher interest rate attached to these loans to offset costs that could occur with a default in payment. Interest rates vary, depending on the amount of the loan.  A reputable loan company, however, makes an effort to keep these as low as possible.


An attractive part of an unsecured personal loan is the flexible repayment option. Credit cards must be paid down to a certain percentage each month to keep your credit score intact. Loans are different, however. A set payment schedule is custom made to fit your needs. Your expenses and paycheck days are taken into consideration when a repayment schedule is made. Your payments are a reasonable amount once or twice a month. The entire balance can be paid off at any time, if you reach more stable financial situation. There are often long and short-term options to choose from.

Unsecured loans can be a big help for borrowers who have significant income but lack proper collateral or credit. These income-based lending opportunities give individuals a chance to get caught up on finances without taking on a large monthly payment. Cosigners can be an option for borrowers who fall short of the income requirement. Repayment is calculated with your expenses in mind. Regular payments fit into your budget and are planned around your paycheck schedule. Bonsai Finance can help you find the right loan to alleviate the stress of unexpected bills.