The most basic questions that awaits us when we decide to get a loan is whether we want a secured loan or an unsecured one. If you are faced with this very same question, we help youacquaint with the reasons why you should put your finger on a secured loan.
1. The Ease Factor: While many unsecured loans are becoming increasingly hassle-free, I cannot ignore the credit check factor and other protocols that are followed, before the lender approves of a borrower. However, with secured loans, you are securing your debt through the collateral, making it ever easy for the lender to approve your application without putting you through any arduous procedure or extended wait.
2. Interest Rate: Collateral means higher certainty, which in turn means that lenders are taking lower risk when they offer secured loans. As a result, these loans accompany relatively humble interest rates.
3. Higher Borrowing: When compared to unsecured loans, secured loans can be as much as 3 times their amount, allowing you a much bigger amount to be borrowed. If you need significant amount of money and feel that the amount you can get with an unsecured loan will not suffice, you know what to turn to.
4. Longer Borrowing: Not only do secured loans offer higher borrowing limits but also extended periods for repayments. These loans can last up to 20 years, which is something you cannot find in unsecured loans. However, it is my duty to highlight to you the fact that although longer borrowing may mean lower monthly repayments, the ultimate amount you end up paying is quite high.