Hire Purchase Agreement or Personal Loan? Interest-Free Credit Means Reduced Monthly Repayments

Hire Purchase Agreement or Personal Loan? Interest-Free Credit Means Reduced Monthly Repayments

Personal loans can be taken out on either a secured or unsecured basis. The most common form of collateral provided in relation to any form of borrowing is property. A hire purchase agreement is also a form of no credit checking as the item purchased provides the necessary collateral in the event of the borrower defaulting. Should a consumer default on a hire purchase agreement, the white goods or car purchased can also be repossessed.