Traditionally, secured personal loans have been very popular to get urgent finances, to buy a car, to fund a holiday etc. Modern society is increasingly using secured loans to fund innovative expenditures like cosmetic surgery, debt consolidation etc., and the list is swelling day by day. The loans are getting popular, but are the borrowers able to get the best rates for their secured loans?

Amazing it might sound, but the answer is a blatant “No”. A survey shows that a majority of borrowers shy away from the hard work of shopping around for the best rates on secured loans.

This is indeed a very worrying situation. It bleeds the borrower from the very first installment and is not good for the lending market in the long run because the borrower loses faith and feels harassed. Getting a best rate for secured loan compulsorily includes a diligent shopping. Every financial expert, who is worth his salt, will advise you to do it before you decide on any particular offer.

The process of getting a best rate for secured loan should start with looking for offers that impress you. They can emanate from newspapers, websites, media or for that matter any resource. The important part is that you should note them down, preferably on a handy notepad.

Now the process of enquiry begins, if you have taken a loan before and have a positive experience with the lender, by all means go back to him and present your case. Ask him for a quote. Since, you are a repeat customer, it is most likely that the lender will keep you and quote the best rates. Check your local bank and financial institutions in your proximity. The ‘nearness' factor might enable them to consider you for a better rate than the regular ones. One by one; visit every lender that is on your list. Get a quote from all of them. Ask them about their terms and conditions, the time taken to get the loan and the overhead costs for the loan. Jot these facts down on your handy notepad so that you can easily compare them later.

The most important point to be kept in mind, while shopping around for the best rates on secured loan is that you should present the same collateral to them, while making any enquiry. Don't fluctuate in the description of your credit history and financial soundness. In this way the quotes you will get from different lenders will be judged by the same criteria. Chances are greater that a lender, which provides you with the best rate on secured loans is an online lender, this is for the simple reason that an online lender has the lowest overhead costs and thus are able to operate at lesser costs than the high street lenders.

Analyse all the facts you have noted, impartially. Find the one who is giving the most competitive APR (Annual Percentage Rates), simple repayment schedules and minimal fees. Stay clear from variable rate APR. The lenders can tamper these so that a loan looks very attractive at the start and gradually inflates in a few months. If you sincerely shop around for the best rates for secured loans, you will find lenders who are offering APR from 7% to 25 % or more. So the savings are visible, the amount that a casual borrower can lose due to his or her slackness is big enough to make or break a fortune.

After taking a decision, go to the lender and apply for the loan. Ensure that the rates and terms along with the fees are the same as they had quoted earlier. There are few other things that will help you in getting best rates on secured loans such as a proper collateral, good credit score and sound financial condition, but other things being the same shopping for the right lender will ensure best rates on secured loans.