Pros & Cons of Secured Loans

A secured loan is one that uses the assets (belongings) of the borrower to ensure the repayment of the loan. In borrowing money against, for example, your home or car, the lender has less risk of you reneging on your commitment to repay. Should you fail to repay the loan or have too many delays in payments, the lender has the contractual right to your property. That ’s right, they own your belongings until you repay the full amount of the loan and interest.

Getting a secured loan is a great idea when you:

1. Have bad credit and cannot get an unsecured loan
2. Have a bad credit history
3. For whatever reason you are unable to be approved for an unsecured loan

Pros & Cons of a Secured Loans

• Fast approval based on your property ownership
• Lower interest rate
• Borrow at the value of your property
• Extended period for repayment

• You are at risk of losing your property
• Having to pay back the loan

source : http://www.loansnmortgages.co.uk

Secured versus Unsecured Loans

Secured loans are backed by personal property, usually a home. A secured loan can be made against a home whether it is under mortgage or owned outright. The amount of the loan can depend on a number of factors, particularly how much the owner owes on the property in comparison to the value of the property. The larger this difference, the increased likelihood of a larger loan. Of course, the borrower's credit rating and amount of current debt will also be a factor.

Loan Purposes
Secured loans can be used for a wide variety of purposes, from debt consolidation (such as paying "off" credit cards), to home improvements, to vacation money. The length of time a borrower has to pay off a secured loan will depend on the lending institution and the terms set forth in the loan, but can range anywhere from three to twenty-five years.

Because secure loans are exactly that--more secure for the lender--they typically have a lower interest rate. Interest is charged on the amount borrowed and calculated into an Annual Percentage Rate (APR). The loan is paid back monthly over the term of the loan.

Some arrangements include penalties for paying back the loan ahead of schedule. Secured loans are often larger than unsecured loans, given the security of the loan. Most fall into the £3,000 to £50,000 range, although they can go as high as £100,000.

source : http://www.ukpersonalloanstore.co.uk/articles/secured_loans_unsecured_loans.html

Make secured loans a more attractive

A secured loan is a loan which is typically 'secured' on your property, i.e. your home. These types of loans are generally for larger amounts than personal loans and may come with a lower apr than the personal loans listed here as the security of your home is being used. These types of finace are typically used for home improvement loans, bad credit loans and even debt consolidation loans, where you will use the loan and pay off all the small debts, resulting in one manageable monthly payment.

There are some advantages that make secured loans a more attractive proposition which include a lower apr, a longer repayment period so that you can spread your monthly costs more easily and also various other benefits that individual companies can offer such as repayment holidays. With the repayment holiday you can take a break from your repayments if you choose to.

source : http://www.selectloans.co.uk/SecuredLoans.html

Burden-Less Secured Finance For Holidays

When going to holiday tour through a loan, your prime concern usually is that the loan should not spoil your mood whenever you remember the holiday tour in future, which may happen if the loan proves out to be a burden. So, while you enjoy the loan at present, it should be a burden less affair in future also and then only it can be said that you had a nice holiday of your life. Secured holiday loans are exactly designed secured loans for keeping the cost low for the borrower.

Secured holiday loans are easily approved loans. All a borrower is required to do is to place any of his or her property like home, vehicle, jewelry etc as security of the loan with the lender. On having the security in place, the lender is ready to shower advantages on you. The biggest advantage and attraction of secured holiday loans is its lower interest rate which in fact goes lower further for borrowers having excellent or good credit history.

source: http://www.articleavenue.com/article7430.html

Homeowner loan : A secured loan

Purchasing a house ? or Purchasing a property ? It is something that any individual will not do more than once or twice in his life time. But for those people who own any home or other property but who plan to move in to something better and bigger than their current home then it is the time such people should start looking forward to the options that are available for them to have the all important finances in the market.

A homeowner loan is a secured loans type which requires the borrower(people in need of cash) to put some sort of collateral or security for the lender so as to evaluate what amount the lender can provide and what a borrower can be given. Even if the property is already under mortgage, you can apply for a loan on it, as such second mortgage deals are generally availed for home improvement and can come under the category of home improvement loan but rather are secured loans.

The loan amount available on secured home loan deals easily ranges between 3,000 to 50,000 pounds. But only the condition is that if the collateral is there, you are able to opt for secured loans.

source:http://loansonline.blog.co.uk/

Secured medical loans

Secured loans are the best situation for the lenders. The worries become almost negligible at this point. No body knows what will happen in future, if he or she falls sick any day then what he or she would need to pay, is a loan for the respective medical expenses. Such medical loans can be offered under secured medical loans. These loans are opted to incur medical expenses. Such loans are arranged by a lot of loan companies who are too eager to pay the loan at lower Annual Percentage Rate.

In addition to the above features, secured medical loans can be taken with flexible repayment options including the lesser amount as well as the duration of repayment. Any UK resident can apply for secured medical loans.

Knowledge of Personal loans

Personal loan is a popular and typical way of borrowing money, but the first time borrowers must be aware of hidden means.Generally, Personal loans' amount vary between £5,000 and £25,000 and the borrower is anyone aged over eighteen can apply for personal loans.Now the main thing comes i.e. the rate of interest. Typically rates of interest charged on personal loans may vary between 9% APR (annual percentage rates) to 13%, but it is upto the lenders,
they can charge much more as well.

Before taking a loan, you should approach a bank or an expert in finance for a loan, to be sure to ascertain whether you are taking out a secured or an unsecured loan. Former means that your have provided some means of securing the loan amount to the lender, whereas the using later one, you need not to put anything collateral as a security. Clearly, unsecured loans are more preferable.Mostly personal loans are for fixed-terms, which means that you must have to pay a penalty interest if you want to pay off the loan before the agreed term of duration.

Another feature is to check whether you are being charged interest on a daily basis or a monthly basis. Generally, most lenders charge on a monthly basis which can make a big difference to those who want to pay off their loan earlier than the term.The key point is that you must be careful before opting for a personal loan.

Source : http://onlineloans.blog.com/