Secured Personal Loans
Compare interest rates and apply for personal secured loan online
In contrast to an unsecured personal loan, a secured personal loan is a personal loan that is made against a pledge of collateral. The requirement of some form of security to hedge against the lender’s risk is a primary characteristic of a secured personal loan. As the lender’s risk is minimized, secured personal loans generally carry lower interest rates and offer more convenient payment terms.
A secured personal loan (secured loan) is normally secured against some personal asset, such as a home, vehicle, investment, etc., and is often subjected to certain basic documentation requirements. Despite the process requirements, a secured personal loan is often considered very attractive due to its low interest rates and other convenient payment terms, including a possibly longer duration of the loan itself.
The advantages of applying for an secured personal loan online with us
- You may be able to qualify for a larger loan if your collateral provides the appropriate hedge for the lender. At times, you may be able to qualify for a secured personal loan as large as $250,000.
- You can either obtain your loan check or the funds will be deposited electronically into your personal checking or savings account in as little as one business day.
- Your loan duration could be as much as ten years and could be even longer depending on your lender’s specific program.
- Longer loan duration may also translate into lower monthly payments due to the ability to spread the repayments over a longer term.
- No application fee. It is free and easy to compare and save on loans offered by numerous lenders.
- Our broad selection of the finest of lenders in the industry means you will get the best rate possible. The ability to compare numerous lenders means you save money.
- Some lenders do not charge pre-payment penalty if you pay more of your interest or if you repay earlier than the duration of the loan.
- You even have the option of repaying automatically — through automatic deposits made from your checking account.
- You can use the secured personal loan for any need, including repayment of an existing or higher interest debt or loan — debt consolidation.
Secured Loan Tips
A secured loan, in layman terms, is a personal loan that is guaranteed by an asset that is pledged as collateral against the loan. In other words, the asset serves to lower the lender’s risk, and in case you default, the lender can claim your asset and recover all or some of its loan value. This security thus reduces the lender’s risk and often allows the lender to make loans that it would not otherwise make (even to individuals with bad credit).
Another advantage of pledging security as collateral is that the lender will often offer you lower interest rates due to the potential reduction in risk.
Negotiate, negotiate, negotiate
You are pledging an asset as security after all and while that asset reduces the lender’s risk, you may lose your asset in case something goes wrong. You must consider negotiating with the lender and depending on how the lender’s loan program is structured, you may be able to find some wiggle room for negotiating the loan’s terms.
Know what you are pledging and the risks
If you are pledging an asset such as a home, carefully evaluate the risk to determine if it would be worth the game. You wouldn’t want to lose your dwelling after all. So, carefully consider what you are pledging and if other options are available.
Understand the agreement and its implications
Normally, loan agreements are complex documents that could often run in several pages. Carefully read through all the terms and understand their implications before you sign up. If you are unsure, consult a qualified and licensed attorney to help you navigate the fine print. Remember, a lot is at stake here so don’t take this step lightly. You could also ask your attorney if there is a way to negotiate or eliminate certain unfavorable terms.
Make timely payments
Pay on time! Well, this is one of the most important caveats. Not only do you face late payment penalties, you also stand to lose your valuable asset in case you default and depending on how your loan agreement is structured, this could kick in as quickly as a few months (or even weeks) of defaulting.