Secured Loans - Homeowners Delight

By: Eric

Any loan which is availed by giving a security to the lender is called a secured loan. Mostly, lenders accept only your home as a security for the loan amount. Therefore, if you are a homeowner you are comfortably placed to apply for a secured loan.

Lenders perceive secured loans as a safe option. If any borrower fails to repay the loan amount, the lender can repossess the security and recover his loan amount by selling the same. At the same time, borrowers also prefer secured loans because it gives them a lot of leeway in the form of flexible repayment terms, different kinds of repayment options, low rate of interest and a big loan amount.

If you are regular with loan repayments then you can safely opt for secured loans. Secured loans can get you an amount that may fall anywhere between ?5,000 and ?250,000. The loan tenure normally extends up to 25-30 years. It is a long period in which you can repay the loan amount in convenient instalments. So, take all your time but be regular as far as repayments are concerned. This will help you in eliminating the risk of repossession that is very much intrinsic in case of secured loans.

There are different repayment options in case of secured loans. You can either choose interest only repayment plan fixed interest rate plan, flexible interest rate plan or partly interest only and partly repayment plan. These plans give you the freedom regarding the manner of repayment of interest and principal. If you want to defer the repayment of principal amount till the end of loan period, you can choose interest only method of repayment. But, if you want that your secured loan should be over by the end of the loan period then you should opt for repayment plan. Further, you can also choose partly interest only and partly repayment plan.

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