Each of us needs money to meet his personal needs. It can be to buy a dream car or to go on a luxury vacation. Do you know that you can use the equity in your home to obtain a loan? If true. Secured personal loans are designed to help you meet your individual needs and wants by making your home work for you.
Let me first explain the word “equity.” Equity is defined as the difference between the price a property could be sold for and the total debts recorded against it. Secured Personal Loan is a convenient way to borrow large sums of money, regarding the equity in the home.
secured personal loans [http://www.easyfinance4u.com/secured_personal_loan.htm] are available on one’s property. Secured personal loans can be used to consolidate debt, which will help manage debt effectively. Secured personal loans can also be used for home improvements or any other personal purpose. It depends solely on the borrower, how he decides to spend the loan amount.
The loan limit for a secured personal loan is between £5,000 and £75,000, although some lenders will consider offering up to £100,000. Secured personal loan is a simple method to generate extra money. You can get a personal loan guaranteed up to 125% of the value of your property.
The guaranteed personal loan repayment period can range from 5 to 25 years, depending on how much you can afford as a monthly payment. Secured Personal Loans also offer convenience to repay the loan amount as you wish with flexible repayment terms.
The main benefit of a secured personal loan is that they are offered at lower interest rates than unsecured personal loans. The cheaper interest rate reflects the reduced risk involved for a lender to provide a secured loan. The lower interest rate helps save your hard-earned money for other important uses.
The interest charge on a loan is expressed as an APR (Annual Percentage Rate). The APR for a secured personal loan depends on the equity in the property and one’s personal circumstances, for example, any adverse credit.
Approval of secured personal loans tends to be easier than unsecured personal loans as it is secured by the borrower’s property. Therefore, the lender is on the safer side.
One can avail the benefits of a secured personal loan only if he owns a property. Homeowners with bad credit histories or low credit scores can also enjoy the benefits of a secured personal loan.
Various banks, financial institutions, and even online lenders offer secured personal loans. Do not rush! Compare prices, collect loan quotes from various secured personal loan lenders. Most lenders offer free loan quotes, but some lenders may charge nominal fees for it. Compare the loan quotes and find the one that best suits your expectations.
Secured personal loans work as a source of financing for homeowners’ expenses. It gives homeowners an opportunity to make use of the equity in their home. Secured personal loans are offered at a cheaper rate of interest as they are secured against the borrower’s property.