What is an uninsured personal loan?

squeaker asked:


I would like to finance a used car. My bank will not give me an auto loan without the dealer being a franchised car dealership. I would rather use a private owner or small dealer to avoid overhead. Can you tell me what uninsured loans are?
Thank you.

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Tags: Car Dealership, Loans, Personal Loan

This entry was posted on Monday, April 27th, 2009 at 9:45 am and is filed under Personal Loans. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

2 Responses to “What is an uninsured personal loan?”

1. mbrcatz Says:
   April 28th, 2009 at 8:41 am

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   Sure, it’s where they agree to lend you money, without any kind of backup. Usually, it’s done to people who aren’t very creditworthy, so the rates tend to be higher - a LOT higher - to make up for the extra risk.

   If it’s overhead you’re worried about - well, an uninsured personal loan is the MOST expensive way to finance a used car.

2. Shoestring Says:
   April 30th, 2009 at 6:36 pm

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   It’s when they give you money without you putting up anything as a collateral.
   In short, if you don’t pay it back they lose it all.
   These loans come with high interests.