Secured Loans

A secured loan is backed by collateral, such as property, gold, or other valuable assets, which reduces the lender’s risk and can result in lower interest rates. 

A secured loan requires collateral, while an unsecured loan does not. Secured loans typically offer lower interest rates and higher loan amounts, whereas unsecured loans rely on the borrower’s creditworthiness.

Secured loans can be used for various purposes, including home renovations, purchasing a vehicle, business expansion, or other significant expenses requiring substantial funding.

Interest rates for secured loans generally range from 8% to 15% annually, influenced by the value of the collateral and the borrower’s credit profile. 

To qualify for a secured loan, you need to provide valuable collateral, maintain a good credit score, demonstrate stable income, and meet your lender’s specific eligibility criteria, including age and repayment capacity.

The maximum loan amount for a secured loan depends on the value of the collateral and the borrower’s income. Secured loans are usually offered up to 70% to 90% of the value of the collateral.

If you default on a secured loan, your lender can seize the collateral to recover the outstanding amount. Additionally, defaulting can damage your credit score and affect future borrowing capabilities.