What Are Secured Personal Loans
Secured personal loans are one of the most common and general personal loans in Australia. A secured personal loan is when you borrow money from a lender such as a bank or private lender and that amount of money is secured against an asset in your name such as a car for example. A secured personal loan gives the lender some sort of guarantee and in return most of the times interest rates are lower than unsecured personal loans.
Should I apply for a Secured or Unsecured Personal Loan?
If you have some sort of asset that can be secured against the personal loan, then it might make more sense to apply for a secured loan as secured loans are generally easier to obtain as the lender has security on the money they are lending you. In addition to that, the approval process may be easier and the lender may even offer a longer repayment term. If you do not have any asset to use, then you may have no choice but to apply for an unsecured personal loan. Both types of loans are offered by most lenders across Australia and are very common loans in the personal loan space.
What can I do with my secured loan?
Secured personal loans can be utilized across a broad range of purposes. It provides higher flexibility than unsecured loans, with higher loaning amounts. Secured loans are ideal for but not limited to:
- Purchasing a new or used car
- Debt consolidation
- Home renovation
- Medical bills
- Auto repair
- Moving costs
- Wedding expenses
Benefits of a secured loan
A secured personal loan poses a number of advantages, which is why borrowers love opting for it. The lending nature of a secured loan is less complex when collateral is involved, this results in the lender offering flexibility in various areas. This includes: lower interest rates, larger lending amounts available, and most people being eligible including those with poor credit scores. Along with this, secured loans offer extended repayment periods for your convenience. This loan is optimal for businesses, as it enables them to loan higher amounts of money. The increased trust of the lender, means more flexible lending solutions for corporate purposes.
Can anyone qualify for a secured loan?
Do you have a poor credit history? No worries, our extensive range of lenders available means that your application will be successful most of the time. Secured loans have a higher rate of application success, as they provide collateral for the lender when repayments aren’t made. However, unsecured loans are optimal for those with good credit. This is due to the lack of collateral provided, meaning that the lender observes the borrower’s credit history to determine whether they are eligible.
What Do I Need to Apply?
To apply online with Same Day Personal Loans, you will need to meet the below. If you do, then are you good to go?
- Be an Australian Citizen or permanent resident
- Be 18 years of age of older
- Have a mobile number and email address
- Must have a regular income for the last 90 days
- Have internet banking
You are and have all the 5 points above then you are eligible to apply for a secured personal loan with Same Day Personal loans.
How Do Secured Personal Loans Work?
Ok, so you now know the difference between secured and unsecured personal loans but you are thinking how can Same Day Personal Loans help me? Great question, I have an even greater answer; Through our 100% online application form that can be done within 8 minutes, gains you access to a massive panel of Aussie lenders! No need to apply so many times with all types of lenders, apply once with Same Day Personal Loans and we do all the hard work to match you with the most suitable lender that can help you obtain your secured personal loan. Sounds great? That’s because it is! Apply now online.
What Should I Look Out For When Applying For A Secured Personal Loan
- The interest rate is always something to compare
- Is the interest rate fixed or variable?
- Applications fees
- Early payout fees
- Are there any penalties for making extra repayments?