If you ever need cash for a project, bill, or expense, you might want to consider applying for a signature loan. Many people do not understand what signature loans are, and many do not even know they exist. If you do not know a lot about signature loans, it might be helpful for you to learn about the features of these loans. Here are the main features you should learn as you decide if this is the right way for you to borrow some money.

The Name Says A Lot

The name of a signature tells a lot about these loans. The name says that they require a signature, and this is the main perk of these loans. You do not need to present collateral to the lender when borrowing money through a signature loan. The lender bases the decision on your signature alone. These loans also go under different names, with a personal loan being the most common.

They Provide a Lump Sum of Cash

The second feature of a signature loan is that they provide you with a lump sum of cash. If you apply for a loan and get approved, the bank gives you a lump sum of money. It is not a line of credit that you can borrow against when needed. It is a one-time amount of cash that you get when the bank approves and processes your application. You can use the proceeds anyway you would like.

They Are Riskier Than Other Loans

The third feature is the risk level. This form of loan is riskier than other types, as there is no collateral involved in the deals. As a result, you will pay a higher interest rate to borrow money through a personal loan compared to other types of credit lines.

They Have Eligibility Requirements

The final feature to understand is that they require more than a signature. Lenders have eligibility requirements for issuing these loans, and here are some of them:

• Credit score – You may need a specific credit score to get approved.
• Job – You may have to verify your income and have enough income to get a signature loan.
• Proof of identification and address – You may also have to prove who you are and where you live before the lender approves your request.

Do you think that a signature loan is a right option for your situation? If so, you can easily apply for one by visiting a lending institution that offers them. You can call or visit one online today to get started.