Among so many types of loans, unsecured loans are welcomed by many borrowers, because they do not need to provide collateral, and loans are convenient and fast, but everything has advantages and disadvantages, and many people are not very clear about the disadvantages of unsecured loans. Next, I'll give you a brief introduction.

1, the loan amount is low.

Because there is no collateral as collateral, there is a certain loan risk for lending institutions, so the loan amount will be lower. Usually, the loan amount obtained is about 5- 10 times of the borrower's monthly income.

2. The expected annualized interest rate of the loan is high.

Compared with mortgage loan, the expected annualized interest rate of unsecured loan is higher, ranging from 8% to 15%, because there is no collateral.

3, easy to be deceived

Unsecured loans are very convenient and fast, because they don't need collateral, but they often breed many scammers to cheat under the guise of unsecured loans. Therefore, in the process of handling unsecured loans, we should be vigilant and choose formal lending institutions to avoid being deceived.