A pleasant surprise for people in need of money is that now they can borrow money for their needs easily without feeling the burden of high interest rates charged on the borrowed money. This is available through secured loans which are available to borrowers on pledging an asset with the lenders.
Through these loans, the borrowers can get money on the basis of the equity of the collateral that they pledge with the lender. They can pledge any asset with the lender like car, home, stocks, real estate etc. which has a high equity value in the market. a higher equity value means that the borrower can take up a bigger amount as the loan and that too at a lower rate of interest.
offer an amount usually in the range of ?5000-?75000 for the needs of the borrower. These are personal loans which can be used for any purpose of the borrower like debt consolidation, home improvement, car purchase, wedding expenses, educational expenses, vacation travel etc.
The borrower is required to repay the loan amount to the borrowers in a term of 5-25 years which is a long term for the convenience of the borrowers. According to the equity of the asset pledged, the borrower is charged a low rate if the collateral has a high equity. This is so because the collateral provides an assurance to the lender about the retrieval of the loan amount.
Due to the low rate of interest, the borrower does not face much problem in repaying the loan amount. Therefore repossession of assets due to non-repayment happens only in rare cases so the borrowers do not have to be afraid of loss of their assets. Since repayment is assured, the borrowers with bad credit are also charged low rates when they borrow money through these loans.
Secured loans are a source of easy money for the borrowers who have assets and are ready to pledge them. Their problems can now be resolved easily.
