When the crisis tightens and money starts to run out or when you find yourself at a time when you need to invest in a business, for example, but don’t have the funds for it, it’s common to look for credit. To try for lower rates and easier approval, many resort to a secured home loan, but do you know how it works and is it really worth it?
How does the secured loan work?
The secured mortgage is a form of personal or legal credit. It is made in the long run and targets customers who need the resources to start a business, make an investment, build or renovate a property, among other things.
Because it’s a form of credit with a collateral involved, you don’t have to prove the destination of the features. Also, for the same reason, interest rates tend to be lower than in most types of credit available.
The secured loan usually has a much higher credit limit than a personal loan, as it takes into consideration the value of the asset being used as collateral.
Added to all this, the term of payment of a secured credit tends to be longer, reaching 180 months in some institutions.
The main disadvantages of secured home loan are related to the costs involved in this type of loan and the possibility of losing the property in the event of default.
The main costs involving the secured loan are the Asset Received Valuation Fee and the notary costs. In addition, to initiate the process the consumer must have the good and on his behalf in order to make the request.
It is also worth remembering that it is not a small amount loan. In many institutions the minimum loan amount is $ 20,000, and may even exceed this amount.
Where to make a home equity loan
Several banks and financial institutions offer the secured loan. At Sanbuwan bank, the customer can choose to borrow from $30 thousand using as collateral a property of $70 thousand. At Cairo, it is possible to obtain a secured loan with values from $20,000 up to 60% of the property value, varying according to the user’s payment capacity.
Does Loneyco offer a secured loan?
We do not currently have a secured credit solution. However, we offer very advantageous options for those who want to take credit without the risk of losing good in case of default. Loneyco offers non-CET payroll-deductible personal credit from 2.97% per month, depending on credit analysis.