Secured Loans - Safe And Cost-Effective Loans

 


Visitors: 140

Secured loans are availed by placing an asset as collateral, which serves as a security against the loan amount, i. e. , in the event of too many delays or frequent defaults - unintentional, incidental, or intentional - the lender can take over the pledged collateral. To reap the benefits of a secured deal, the borrower must pay his EMI’s (Equal Monthly Instalments = Principle + Interest) on time and in full.

As secured loans are very safe for the lenders, the loan requests get quick attention. Other encouraging characteristics are:

-Competitive APR (APR = Nominal Rate + Loan Processing Charges) depending upon the repayment method - fixed or capped or flexible.

-Negotiable payback terms and loan conditions - early pay offs, extended repayment period, grace period, hidden charges, payment holidays, penalties, payment protection plan (PPI), etc.

Generally, a secured deal has:

-An amount range of £5,000 to £75,000 -An APR range of 7.9% to 19.9 % Variable (typical rate is 13.55 % APR Variable) -A compensation term range of 5 to 25 years

However, a person with an impeccable credit history may get a better deal.

Two major affordability parameters that play a very crucial role in loan approval procedure are:

-Credit history - good or average or bad -Debt to income ratio (DTI = Debts/Income) - current financial standing

Depending upon the above-mentioned parameters, loan seekers are categorised as prime customers, near prime customers and sub-prime customers. The sub-prime customers are further sub-divided as light (low adverse credit), medium (medium adverse credit) and heavy (high adverse credit)

Opting for a http://www.longdogfinance.co.uk

(279)

Article Source:


 
Rate this Article: 
 
Cheap Secured Loans: Chopping Down The Cost!
Rated 4 / 5
based on 5 votes
ArticleSlash

Related Articles:

Secured Personal Loans – Benefit from Cost Effective Finance

by: Amanda Thompson (December 21, 2006) 
(Finance)

Cheap Loans- Secured Loans Cost You Far Lesser Than Unsecured Loans

by: Angelo Drew (March 21, 2007) 
(Finance)

Open the Avenues for 'Cost-effective' Financial Assistance with Secured Loans

by: Jack Watson (June 25, 2007) 
(Finance/Loans)

Live Safe: Secured Homeowner Loans

by: Amanda Thompson (November 20, 2006) 
(Finance)

Secured Loans UK: A Safe Bet for the Money Lender

by: Murphy Alice (March 27, 2007) 
(Finance)

Secured Loans - A Safe Side for a Finance Lender

by: Shiny Jones (August 26, 2011) 
(Finance/Loans)

Get Low Cost Secured Loans Without Any Aggravation

by: Ricky Hussey (July 06, 2008) 
(Finance/Loans)

Use The Internet When It Comes To Low Cost Secured Loans

by: Jason Hulott (July 17, 2007) 
(Finance/Loans)

Borrowing With Low Cost Secured Loans

by: Jerry Warner (April 25, 2008) 
(Finance/Loans)

Cheap Secured Loans: Chopping Down The Cost!

by: Marsha Claire (October 06, 2006) 
(Finance)