Secured personal loans - single solution for all your financial ills
Written by: Petre Taylor
The general opinion of people about secured personal loans has
undergone a sea change. They are no longer considered as evil as
in the yesteryears. They have become as much a part and parcel
of the present day's individual as some of the essentials like
food. In fact, it is secured personal loan which finances food
and other needs in the absence of sufficient income.
Earlier people would abstain from taking personal loans unless
it was very urgent. Personal loans during those times were more
often than not secured through collateral. There was always a
fear of repossession of the asset. The fears were not completely
baseless. There were quite a large number of instances of
borrowers losing their assets to loan providers because of non
payment of the secured personal loans.
Lenders too have a changed their attitude towards borrowers.
Lenders earlier felt that unless strict vigil be kept on
borrowers, there are greater chances of defaults on the secured
personal loan. However, there is not much truth in the
allegations. Borrowers are obliged to repay any loan that they
take. They know that they have no option other than to keep up
with the payments. The payments have to be made, although may be
delayed. It is the borrower who is most seriously disadvantaged.
An increased payment has to be made in the form of penalty. The
loan provider seizes the collateral and the borrower's credit in
the financial market sees a fall.
Lenders now try to go deep into the reasons behind the non
payment, if any. For borrowers who are genuinely incapable of
making payments at a particular point of time, the lenders are
ready to make concessions in the form of payment holidays.
And why the borrowers of secured personal loans shall not be
treated thus. Having offered the loan provider a right on their
home or any other asset, they have covered a large part of the
risk associated with lending.
Through secured personal loans, borrowers can get up to £75,000.
The maximum the amount of secured personal loan goes is
£100,000. The lower limit for the borrowers of secured personal
loans starts from £5,000. The type of asset used for
guaranteeing loan repayments will influence the amount of loan
one qualifies for. The largest amount is lent against home. Loan
providers mainly prefer home as collateral, because of the
relative safety that homes promise.
Secured personal loans leave the decision of utility to the
borrower himself. The borrower need not state the use for which
secured loan is needed. If the loan proceeds have been taken for
debt consolidation, the borrower at his will can use the loan
proceeds for buying car, home improvements, or for going on
Interest rate is where most borrowers find secured personal
loans the best. Secured personal loans are the cheapest of all
personal loans. The decreased risk and applicability to
individuals rather than businesses keeps the interest rates low.
Borrowers can find personal loans in the range of 6-25%,
depending on several factors like value of the collateral
offered, type of collateral, the credit status of borrowers etc.
Did we mention credit status? Credit status of the borrower
indeed has a role to play in secured personal loans, though not
as important as in unsecured personal loans. Borrowers' bad
credit history owing to CCJs, IVAs, and bankruptcy are little
important in secured personal loans. These borrowers too can
draw a good deal in spite of their bad credit history.
An important reason behind the popularity of secured personal
loans has been the independence borrowers get in deciding the
terms of the loan. The independence mustn't be misused however.
Taking decisions without sufficient information is as much of a
misuse of independance. One must not hesitate from talking to
experts on any of the issues associated with secured personal
loans. It is actually your asset that is on stake in the secured
personal loan, and taking the correct decisions will only bring
you nearer to retrieving the rights to the asset again.
About the author:
Peter Taylor is a senior financial analyst at easyfinance4u with
an acumen for finance and insurance. In recent years he has
taken up to provide independant financial advice through his
informative articles.His articles are widely read because of the
lucid manner of wriiting and thoroughly researched datas.To find
Secured loans,secured personal loans,secured debt consolidation
loans in uk that best suits your need visit
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