What is a secured personal loan and what are the benefits?25th August 2016
What is a secured personal loan and what are the benefits?
At Fair Go Finance, a secured personal loan is a type of personal loan we can offer to customers.
A secured personal loan means the customer offers a form of security for the loan, such as a car, motorbike or boat.
By offering security, it shows the customer’s genuine commitment to repay the loan.
This is because, in the regrettable event the loan repayments aren’t made, the security that was provided can then be sold to clear the outstanding loan.
What are the benefits to the customer by offering security?
There are a number of benefits to the customer if they offer security for their loan. They are:
- Offering security shows genuine commitment by the customer that they intend to repay the loan.
- If a customer’s application is not strong, by adding security for the loan can help the loan be approved.
- Providing security can sometimes enable a longer term to be offered, or even a lower interest rate.
What types of security can be offered?
At Fair Go Finance, we can accept any unencumbered vehicle that is currently registered in your own name. Examples are:
- Boat and Trailer
- Caravan etc.
What if my only security already has a loan against it?
We cannot take security over a vehicle if it already has an interest on it from another party. However, we are able to offer debt consolidation loans, so depending on how much you owe on your other loan, we may be able to repay that debt and provide you with one larger loan.
A debt consolidation loan can be very beneficial, especially as they can make it easier to manage (as you will only have one repayment to worry about instead of two).
What else should I know about secured personal loans?
At Fair Go Finance, we can offer secured personal loans from $2000 – $5000.
As with any loan, it’s still important that you have a reliable payment history and can afford the loan.
The intention is for you to repay the loan successfully, so we can remove our interest against your security!
How can I apply for a secured personal loan?
If you are a new customer, click here to complete our easy online application form.
If you are a returning customer, click here to use our very quick returning customer form.
We hope this has helped explain what secured personal loans are. If you have any queries, please contact us, we’re here to help!