If you’re someone planning to renovate a home or buy a car and happen to be short on funds, you have probably done the groundwork to find out the best financial tool for the purpose. And needless to say, anybody would agree that secured loans are the best go-to option rather than other forms of fund generations such as help from friends, or even bootstrapping. This is especially because secured loans come with a slew of benefits that are hard to avoid.
Here are seven reasons why we think you should consider taking a secured loan.
This is probably the biggest advantage that a secured loan can give you. This is also because you will be pledging your asset as collateral against the loan secured. Since it means lesser risk for the lender, it translates as a benefit for you as well in the form of lower interest rate. Not to mention that secured loans come with a higher chance of approval as compared to other forms of loans.
Your loan gets processed fast
The reason why your secured loan gets processed fast is also due to the same reason: less risk for the lender. While other options like unsecured loans may have to go through really tight eligibility checks, only the market value of your collateral needs to be assessed when it comes to secured loans. So you can rest assured that you don’t have to break a sweat too much for your financial goals to come true this way.
Easy repayment for you
Usually, the tenure of a secured loan is longer. This means two things: smaller EMIs and easy repayments: both for you. Not to mention that you have the facility to make overpayments, pay the loan off in full without penalty. Who wouldn’t love to have a peace of mind without having to constantly worry about huge monthly payments to the bank?
You get negotiation power
In order to avail a secured loan, it’s a no-brainer that you’ll be pledging a valuable asset of yours. Doesn’t it behove that you also have some say when negotiating with the lender? It does. Not only does it give you the option to scout for a lender who will give the maximum amount against your collateral, but it will also give you the option of negotiating the interest rates as well. Good enough reason for a secured loan, you think?
The ability to borrow huge amounts
Since the value of the loan you receive is predominantly based on the collateral you pledge, you will have the option to get really huge amounts when going for a secured loan. This means that even if your business is new or its value not big, you’ll be able to avail a huge sum based on the value that your collateral fetches.
You don’t have to worry about a low credit score
A vital factor that has a say in you getting a secured loan is your collateral value. While lenders may be stringent in checking your past credit behaviour in unsecured loans, here the lenders are going to be a bit generous. This is again only because you’re liable to go into foreclosure and lose the property to the lender in case of a loan default. With proper knowledge and help from an experienced independent broker, a secured loan offers a great way to raise finance and provides a perfect opportunity to remortgage as well.
Just imagine the possibilities of what you can do with the loan that you take on your residential home or on a BTL house. Refurbishing your home, consolidating outgoings into one monthly repayment, paying your children’s tuition, wedding expenses, paying off your tax bills, expanding your property portfolio, buying your favourite car, the list can go on.
Now that you know secured loans are the way to go, you don’t have to worry about finding the best deals out there. At GPS Finance, we’ve had the opportunity to nurture hundreds of dreams to reality with our expert secured loan services. Tell us how we can be of help to you at www.gpsfinance.co.uk!
- 25 Feb, 2019
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