Secured Loan: Collateral Fetches you Higher Amount

By: Pamella Scott

Today, borrower can manage his basic necessities with the income but when it comes to the luxuries he has to walk out in search of a best loan. But if borrower has collateral to back up for the loan then he feels relieved as he can avail secured loan at easy terms and conditions.

Secured loan as the name suggest are the loans that require some valuable collateral against the loan amount. Collateral helps the borrower to fetch larger amount to the borrower at the easy repayment option and lower interest rate. Mostly borrower uses his home, car, furniture or valuable document as collateral for the loan amount.

Collateral against the loan makes the borrower relief from higher interest rate as under the secured loan he enjoys lower interest rate, larger amount, easy and flexible repayment option. This is because lender is secured against the loan amount.

In the secured loan, borrower enjoys the higher loan amount ranging from ?5,000 to ?75,000 for easy and affordable repayment terms of 5-25 years. While dealing with the secured loan, borrower enjoys low monthly installment for the repayment period i.e. which fits the borrower's monthly income.

No doubt, different lender offers different terms and condition to their borrowers i.e. depending upon the value of collateral placed, credit history and the borrower's ability to repay.

However, secured loan can be even availed by the borrowers who have imperfect credit history like CCJ's, IVA, defaults, arrears, bankrupts, etc to their credit account.

helps the borrower to meet needs like buying a house or car, meeting the wedding expenses, going for holidays or consolidating the debts.

Collateral is involved in the secured loans so only after the evaluation of the collateral, secured loan is offered which may take some days especially when borrower is borrowing from the traditional mode like banks, financial institutions or leading lenders etc. But while dealing with the online mode, borrower can avail secured loan in lesser time.

Therefore, borrower must tie-up with various online lenders across the loan market and must get the quote so that he can compare it to avail the best terms.

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