LoanMoz.com Study Finds Lenders Offering Unsecured Loans Have Doubled in Past 16 Months
LoanMoz.com recently published the results of a comprehensive study on unsecured loans. The study found that unsecured lenders are offering unsecured loans at an increased rate, with the total number of unsecured lenders now available to consumers more than doubling in just 16 months.
The surge in unsecured lenders is estimated to be caused by several factors, including a growing economy that is trying to meet the needs of consumers who have a strong pent-up demand for purchases, including home renovations and remodeling projects.
Unsecured Loans are a Popular Option as they offer Personal Loans without Collateral
As opposed to secured loans, where borrowers pledge an item such as their vehicle, house, or other property to ensure they repay the unsecured personal loans, unsecured lenders do not require any additional security for a loan. This makes unsecured loans a popular choice among consumers who may have difficulty securing a loan due to poor credit or no available assets as collateral.
Lenders are Offering More Unsecured Loans Due to the Demand
"With many unsecured lenders doubling in number over the past 16 months, it appears that lenders are reacting directly with their offer of more unsecured personal loans as demand from consumers rises," said Peter Beattie, President of Marketing and Research at LoanMoz.com. "The combination of low-interest rates on unsecured loans paired with increased demand is likely why we're seeing more unsecured lenders entering the market."
The rapid rate of increase in unsecured personal loans has also helped contribute to a shift from previous years, where unsecured lenders only offered unsecured personal loans as a last resort. Now, online lenders are offering unsecured loans as an initial offer rather than a "final option" for financing.
It is Estimated that the Number of Lenders Offering Unsecured Loans will Continue to Increase through 2023
LoanMoz.com published their findings on unsecured lender availability based on publicly available information from January 1st 2020 through December 31st 2021, and it is estimated that the number of lenders offering unsecured loans will continue to increase at a rapid rate through 2023.
"It's not surprising that unsecured lenders are increasing in number," said Beattie. "With unsecured loans becoming increasingly popular due to their ease of use, unsecure lenders will continue to expand into the market, giving more options for consumers looking for unsecured personal loans."