What Are Secured Loans?

Secured Loans

hand holding a car keys

We offer Secured loans to buy an asset (e.g. car loan or motor bike loans) or to obtain approval for a larger personal loan amount.

By offering a vehicle as security longer repayments terms can be structured to ensure the repayments remain affordable.

Using a Car for this Purpose -

All of our secured loans are secured by a vehicle which is encumbered until the debt us fully repaid. Many people get confused and feel that they have to give their car up during the loan term until the loan is completely paid back. This is not the case, you simply use your car as collateral against the loan yet your still have full use of the car whilst you are paying the loan off. When the secured loan is complete the encumbrance is lifted off the vehicle and the customer retains full title over the asset.

Secured loans are an excellent means of improving your prospects when applying for loans. A loan amount that may otherwise be outside of your reach can often become available to you simply through providing an asset that can provide the basis for secured loans. Whether you need car loans or personal loans for other needs, you can often ensure a larger approval through  applying for a secured loan.

Some people experience difficulty getting their loan applications approved because of their credit rating. This can be very frustrating, especially when people really need immediate funds for all kinds of financial emergencies such as illness, accidents, overdue bills, and home improvement. However, it can be possible to increase your chances of obtaining the necessary funds from lending agencies by applying for a secured loan.

Secured loan risks and benefits in summary

Secured personal loan – things to consider

  • Secured personal loans are only available to borrowers who own an unencumbered motor vehicle. The vehicle needs to be registered entirely in the borrowers name and not be in joint ownership with a spouse etc.
  • As the loan is secured against vehicle, your car should be at risk if you do not keep up with loan repayments. (No lender should lend more than you can comfortably afford to repay). We take great care to not lend you more than you can afford to repay and if your circumstances change we will work in with you to ensure you can manage your payments.
  • Taking out a loan over a longer period of time could make your loan more expensive, as you will pay more interest.

Secured personal loan possible benefits

  • Taking out a secured personal loan by using your car as security could you access to larger sums than if you chose an unsecured loan.
  • You can spend the money on home improvements, a holiday, a wedding or whatever you like.
  • You may be able to repay what you borrow over a longer period of time – reducing your monthly payment. We also have the option that you can pay back your loan early without any penalty. This can work well if you are expecting some future payments like a tax return to come through.

The maximum unsecured loan that we offer is $2,000 and the maximum term on this type of loan is 30 weeks. Yet with a secured loan we are able to offer up to $5,000 and the maximum term for secured loan is 52 weeks.

To apply for a secured loan you will require the same documents as when you apply for an unsecured loan with the addition of your car registration papers. Therefore you will need your last 90 days of you bank statement, 2 recent pay slips, identification, a bill with your name and address on it and your car registration papers.

Once these documents have been received we aim to have the funds available within 24 hours, so if you require a secured loan don’t delay apply online today.

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