Secured Loans- Costing you Less

By: Angelo Drew

Secured loans are loans supported by assets belonging to the borrower so as to reduce the risk assumed by the lender. The home of the borrower may be repossessed by the lender if the borrower fails to make the necessary payments. These loans can be used for any purpose and attract low rates of interest. Since the risk involved for the lender in secured loan deals is low, he also offers other benefits like flexible repayment options.

Secured loans are considered to be the most cost-effective borrowing options in the loan market. If one compares it with its counterpart i.e. secured loans, one finds that the array of benefits that a customer gets are the sole propriety of secured loans. These loans are highly beneficial when one needs to fund major projects like the following.

  • Buying property

  • Purchasing house

  • Buying assets like car

  • Funding educational expenses

  • Improvements for home

  • Going for cosmetic surgeries

    Secured loans can be classified into the following types, in accordance to the uses and nature of the loan.

    1.Secured personal loans- Loans that are used for personal uses like marriages, family holidays, educational expenses and others are called secured loans.

    2.Bad credit secured loans- People running with bad credit (including arrears, defaulters, CCJs and bankrupts) can also avail secured personal loans if they own a home. However, the APR in such cases is usually higher.

    3.Secured debt consolidation loan- Loans that are procured by the borrower for consolidating or paying off all the running debts are called secured debt consolidation loans.

    Secured loans are highly advantageous for those with bad credit history. Lenders in UK feel assured if the borrowers offer them their home as collateral. So, even people with bad credit history due to arrears, defaults, missed payments, late payments, CCJs and Bankruptcy status can avail secured loans.

    Secured Loans
     • 
     • 
     • 
     • 
     • 
     • 
     • 
     • 
     • 
     • 
     • 
     • 
     • 
     • 
     • 
     • 
     • 
     • 
     • 
     • 

    » More on Secured Loans