Essentials of Borrowing
Secured Personal Loans – Providing An Extra Edge
In today’s world every one has ambitions every body wants to achieve something or some people have to get something done it may be related to their business, some thing related to their home or something else. There can be many bottlenecks which could depend on people and their backgrounds and their abilities but if the issue is related to finances or the non availability of funds then the perfect solution to your financial needs are secured personal loans. Secured personal loans can solve all your financial problems. You can use the secured personal loans for any of the purpose that you want to. Few purposes for which people usually take secured personal loans are: • For business reasons • For debt consolidation • For home improvement • For weddings • for education reasons • For vacations • For buying any other asset Secured personal loans are available for not only these purposes but also other purposes as well. These loans are one of the safest bets that an individual can go for.
Secured personal loans as the name suggests can be taken by all those people who can render a security to the creditors. By security it means any asset which can be rendered to the creditor. It may be a car, current active bank account or your home. When you provide your home as security it is also known as home equity. The primary reasons why you should go for secured personal loans are: • These loans carry a lower rate of interest than any other loans usually about 2% - 3% lower than other loans.
The rate of interest charged at 5% onwards depending on the requirement and the credit score. • The monthly installment is of a lesser amount and there is freedom to choose the repayment period also. The highest period is up to a period of 25 years. • Depending upon the requirement you can choose the loan amount yourself. With the highest amount limit of up to £250000. Whereas in unsecured loans the max amount that can be approved is £10000. • These loans are approved faster than unsecured personal loans since the security is already in place the risk is minimized for both borrower and the creditor there are very few credit checks as well. Secured personal loans do have a few advantages but there are a few constraints of them as well. • Secured personal loans are available to only asset holders not to the people like tenants etc. so they cannot be availed by everybody.
• Other relative disadvantage is that if the installments are not made in time or repayment schedule is not followed there is a danger that the borrowers may loose their asset. So one has to be careful while choosing his options. Now days with the rise of so many lending organizations the loans are made available to everybody. Even to people who have bad credit history. People like defaults and arrears. They also need to fulfill the similar criteria of providing collateral. The only difference will be charged a higher rate of interest which may fluctuate depending upon the credit score. An advantage that people with bad credit history can have with these loans is that they can improve on their credit score and their credit rating and have themselves the benefits that people with good credit history have. These days not everyone has the sources to go after what one thinks. Now days more and more people understand that and that is the reason why secured personal loans are offered to the people.
Security is the key and that is why these loans are even more attractive source of loans. A borrower can use this loan for any purpose he wants.
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