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As an unsecured loan is not attached to equity in your home (dissimilar to a secured loan where, if you default on loan repayments, you could lose your home), it is a viable option for people wanting to borrow. Unlike secured lending, unsecured loans do not use collateral such as your property to insure repayment to the lender.
On the other hand, due to the lack of financial security for the lender, with some unsecured loans, unsecured lenders could apply somewhat higher interest rates than secured loan lenders would.
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Unsecured loans tend to be suitable for people who are not in the market for big loans - usually an unsecured loan might extend to the £25,000 level, however, each lender establishes their own rules and restrictions as to how much they will lend you.
The funds from these loans can be used in the same manner as secured loans (with some restrictions) and it's up to you to decide the period to pay it back. Normally, the period to pay back the loan will be quite flexible, between 6 -120 months, so it is important to carefully estimate prior to commitment and see exactly how much you can afford to repay each month.
Due to differing lending requirements when taking out an unsecured loan in contrast to a secured loan, you could find it harder to get an unsecured loan. However, in most cases, there are willing unsecured loan companies who will be able to help you and offer you an unsecured loan.
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