Fast Secured Loans: Borrowing What You Have

2007-03-08 10:33:40

( Financial )



A secured loan is a term that refers to loans that are backed or protected by your savings account. If you have an account with a particular bank and have a long-standing relationship with them, then getting fast secured loans approval will not be a problem at all.

INSURED LOANS

Normally, the amount that you can get for secured loans is a percentage of the amount of savings you have in the bank. But this is not always the case; depending on your credit history, you maybe approved for secured loans with much a bigger value than what you have in your bank account.

Because secured loans are insured by your bank savings, getting approval for them is so much easier and faster. Also, secured loan rate is comparatively lower than the interest rates for unsecured loans. Getting fast secured loans approval is almost always a sure thing because banks consider secured loans as very low risks. Banks can go ahead and lend you money assured that your savings or current account will be able to cover the loan, or at least a considerable part of it. After all, if you have extra money to save, then you must have money to pay.

DIFFERENT STROKES

But of course unsecured loans will still and will always be available to the borrowing market. If banks and other lending institutions stop providing unsecured loans, then they will eliminate a significant portion of their business. A huge chunk of borrowings are in the form of unsecured loans. However, this is not to say that majority of people in society do not have money to save, they just choose to use and dispose their income in other ways.

Banks are very much aware that having savings does not in any way measure your potential as a good loan payer. Different people use money in so many different ways. In the end, opting for fast secured loans or unsecured loans is a matter of convenience.


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