Two Ways to Secure a Personal Loan
May 3, 2016
People are now constantly judging themselves on the fast advance living standards of the world. And sometimes we are more pressured to maintain hard earned status. This is because of the financial constraints we all have to face at some point of time.
Money is what you need the most and by opting for secured personal loan you can have ready money at your disposal. The popularity of secured loan is rapidly growing in Asia, and the demand is really growing.
There are two ways a borrower goes for a loan—secured and unsecured loan. While in secured loan lender demands security in the form of home, car or valuable papers; in unsecured loan, financial strong position of the borrower matters the most. Clearly, to a borrower of average financial position, secured personal loan becomes the best option.
With secured personal loans you avail the loan by using your own asset as security offered to the lender. The secured personal loan is available immediately and that too at lower interest rate.
Moreover, you can have a loan of larger amount if need be so. We know that borrower’s first concern is the interest rate. The very fact that he is in urgent need of money reveals his financial and cash in hand position. When the borrower opts for offering his own property to the lender as security against the loan, he is most surely to get loans at a lower interest. The security ensures the lender that he will not lose his money in case the borrower fails to return the amount. Hence, the interest rate remains lower. But how low will it be, will depend on how much the equity of the borrower’s property offered as collateral is.
One advantage with secured personal loan is that one can borrow greater amount. As the lender has the security, it enables the borrower to ask for a larger amount. On the strong base of security as collateral, the borrower also has the option of expending repayment on a monthly basis even up to 20years.
Often a bad credit report of the borrower becomes a barrier in easy availability of loan. But even in such cases secured loan comes to the rescue of the borrower. This is because he has put his home or any other property as collateral. Even with bad credit secured personal loans offer the same advantages and facilities.
Another advantage of having secured personal loan is that the borrower has this flexibility of using the loan for many purposes. He has the liberty to use it as personal expenditure, go for home renovation, spend on education or enjoy holiday trip. Also, people would go for a secured personal loan for various reasons such as buying a car, property, paying for the wedding. The loan may even be used for the purpose of debt consolidation so that the borrower gets rid of his previous loan payments.
Secured personal loans are very easily accessible as they offer online. After the loan seeker has searched the right lender all he has to do is to apply for the loan online then and there. Also, while searching, he can compare interest rates of different lenders and can choose a rate that suits his budget.
One can safely say that the secured personal loan is the best bet. The borrower gets the amount of his requirement that too at lower interest rate and comfortable time frame as the lender has security in the form of property.