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. Did you know that you can use the equity in your home to get a loan? Yes it’s true. Secured personal loans are designed to help you meet your individual needs and wants by making your home work for you.
Let me explain first, the word “equity.” Equity is defined as the difference between the price for which a property could be sold and the total debts registered against it. Secured personal loan is a convenient way to borrow large sums of money, with respect to 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 improvement 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 obtain 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 that can be put to other important uses.
The interest charge on a loan is expressed as APR (Annual Percentage Rate). APR for a secured personal loan depends on the equity in the property and one’s personal circumstances, for example, any bad credit.
Approval for secured personal loans tends to be easier than unsecured personal loans, since 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 a bad credit history or low credit score can also enjoy the benefits of a secured personal loan.
Several banks, financial institutions and even online lenders offer secured personal loans. Don’t 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 loan quotes and find the one that best meets your expectations.
Guaranteed personal loans work as a source of financing the expenses of the owners. It gives homeowners a chance to make use of the equity in their home. Secured personal loans are offered at a cheaper interest rate as they are secured against the borrower’s property.