Availinga secured personal loanis all about making use of theexisting resources, i.e., it is obtainable by placing an asset (likehome) as security against the loan amount. This pledged collateralensures repayment under all circumstances. That is, if the borrowerdefaults to payback as decided - unintentional, incidental, ordeliberate ? then the lender can take over the pledged asset torecover his money.
Tosome, these loans may seem risky or dicey. But, the fact is that theyare the most certain way of getting the best possible deal. Hence,this loan type has the largest market share in the UK loan bazaar.According to the latest market report, the total secured lending onhomes at the end of February 2007 stood at ?1097 billion. And,that the market of secured personal loans has increased by 11.6% inthe last 12 months.
Pleasenote:Borrowers can easily take care of therisk factors by paying their monthly instalments (EMI's) as decided.
As are safe for the creditors,the loan request gets quick attention along with other benefits likehigh credit range (as high as ?250,000), low interest rates (aslow as 6.7%), long payback term range (5 to 25 years), variety ofrate plans (fixed, variable, discounted, capped or variable) anddiverse repayment methods (capital, interest or partly interest andpartly capital). Borrowers also get the liberty to negotiate forflexible loan clauses like deferred payment up to six months,repayment holiday and accelerated repayment.
Reportindicates that majority of the applicants in March 2007 applied forsecured personal loans for amounts between ?10,000 and'25,000. Out of the remaining applications, one third was foramounts below ?10,000 and one fifth for amounts above ?25,000.And, the average amount requested in March 2007 was ?22,514 ?up by 2.3% since February 2007. The report also indicates thatdespite being offered a repayment term range of 5 to 25 years, morethan half of the applicants chose to repay their loans in themultiples of five. And, of all, the five year the five year and theten year terms were most favoured.
