A loan that is secured against an asset, such as your property, is known as a secured loan. You can usually acquire higher loan amounts because the lender has your asset should you default on payments. This also keeps interest rates lower than unsecured loans because less risk is involved for the lender. It is necessary to do some research before you take out a secured loan and our comparison charts make this easy for you. You can easily compare the main features of each loan provider to find the right deal for you. Please make sure that you read the terms and conditions of these secured loans carefully so that you fully understand your financial obligations. Secured loans do carry risk. Failed loan repayments could result in the loss of your home.
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What are secured loans?
Secured Loans can be available to those with both good and bad credit. A secured loan means that you borrow money but offer something of the equivalent or higher value as collateral for the security of the loan. The most common form of secured loan is a home loan or mortgage. However, there are other forms of secured loan available.
What can you use to secure a loan?
Theoretically you can secure a loan against almost anything as long as it is worth as much or more than the amount that you borrow. Some people secure loans against their cars and others their houses. It is also possible to apply for a loan using your pension of provident fund as a loan.
What is the difference between a broker and a lender?
There are both secured loan brokers and lenders who can help you with your needs. A lender will assess your credentials and work out whether or not to lend directly to you. A broker will take your details and try to find a lender who can lend to you and find you the loan you need. This can be useful if you cannot find a lender who will lend to you. However, you are likely to be charged for this broking service.
What do you need to get a secured loan?
In order to be eligible for a secured loan you will usually need to be over the age of 18 and have an income of at least R1500 a month. If you are looking for a mortgage you are likely to undertake a full credit check to ensure that you will be able to pay back the loan.
Keep your costs down
If you are looking to obtain a secured loan then first of all work out how much you need to borrow and keep it to a minimum. The more that you borrow the more you will have to pay back so it really is worth keeping this amount down. Research different lenders and find out who can give you the best deal on your loan. Work out exactly how much you will have to pay each month and make sure that you can afford it. Secured loans do carry a risk. If you canít make repayments back on time then you risk losing your home or whatever asset you used to secure the loan.
Know what you are getting into
Before you agree to borrow the particular secured loan which you want make sure that your read the terms and conditions of the loan thoroughly. It is really important to make sure that you understand exactly what you are getting into. Loans are serious financial products and should be treated as such. If you have any problems or queries it could well be worth seeking independent financial advice.
Compare secured loans quickly
Researching loans that are suitable for you is a challenge and something that you should take seriously. Our simple, straightforward, easy to use comparison tables can help you find a loan that is suitable for you. Quickly compare important information; it is as easy as that.
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A secured loan can help you in many ways including supporting you financially however there are risks involved.