FAQ

Unsecured finance differs from secured finance primarily in that unsecured loans do not use the goods being funded as loan collateral. Most lenders do not have a requirement for collateral to approve unsecured finance products. The interest rates also differ with higher rates for unsecured finance. Lenders typically apply maximum loan limits on unsecured personal finance.

The repayment term for all loans is subject to lender approval. Applicants may request their preferred term, but it is up to the lender’s decision.

Rates on unsecured financing may be fixed or variable. Across the market, most lenders offer variable rate personal loans. Fixed rates may be secured through some lenders.

Insurance is not a requirement when taking on unsecured finance for a motorcycle. While it is highly advisable to secured goods purchased with finance, it is not a lender criteria.

Motorbikes that are not accepted as suitable loan collateral by lenders may be funded with unsecured finance. These may include vintage, collectable, restoration projects, and second-hand models in poor condition. Buyers that only require a small loan to make their purchase of a new model may opt for an unsecured loan, so they do not have to offer the machine as collateral.

The amount that can be borrowed with unsecured loans will depend on the lender criteria and the individual application. Lenders typically set maximum limits on loans that do not have collateral. Borrower’s financials will also be assessed and their borrowing power determined by lenders.

Unsecured loans attract higher rates than secured loans as the lender does not have the guarantee of loan collateral. Collateral provides lenders with the assurance of recouping outstanding funds payable if the borrower defaults on the loan. Without that assurance, lenders apply higher rates to unsecured loans.

Unsecured finance does not essentially require collateral. The loan is not required to be secured by the goods being funded. Lenders may request some borrowers do provide some form of collateral. The lack of security is reflected in the higher rates which apply to these loans and the maximum borrowing limits.

Where a vintage motorbike is not accepted as suitable collateral for a secured loan, buyers may consider an unsecured loan. Unsecured Personal Loans can be used to fund a wide range of purchases and purposes. With no collateral or insurance required, unsecured finance may be ideal for vintage and collectable machines.

An unsecured loan is not considered as a risky lending product. The term ‘unsecured’ refers to the lack of collateral or security required by lenders to approve these types of loans.