What is a secured personal loan?
If you’ve done a bit of searching online about finance options, you might have heard about a secured personal loan. So, what exactly does it entail? A secured loan is a method of borrowing money that requires collateral. This basically means you have to provide security for your loan in terms of an asset in any form. This could, for instance, be your vehicle, your house or another personal recourse. If you take out a secured personal loan and you’re not able to pay it back, the lender that provided you with the loan can take possession of the asset and sell it to cover the cost of the loan.
Secured or unsecured loans: What's best for me?
For many people, borrowing money happens at some stage in life. As a result, there are as many types of loans as there are reasons for taking them out, giving us all a variety of options to choose from. When it comes to secured vs unsecured loans, it all comes down to what your needs are.
An unsecured personal loan does not require an asset as security. You can use an unsecured loan for many different purposes, such as holiday, travel or improvement of your home. Unlike a secured personal loan, an unsecured personal loan is only supported by your creditworthiness, rather than by any type of collateral. That said, unsecured personal loans typically charge higher fees since they are riskier for the lenders. If you default on an unsecured loan the lender could pass you onto a debt collector as their final option.
Secured loans require an asset to be tied to the loan as security for the lender. This is to protect the lender in the event that you are unable to repay the loan. In other words, if you default on your loan or can’t pay it back, the asset can be seized and sold to make up for the lost money. However, that’s the worst-case scenario. In our experience, our clients take out a secured loan because they're looking to borrow a larger amount. This could be in the form of a medium loan, from $2,000 to $4,600, or a large loan of $5,000 to $10,000.
If you're applying for to Jacaranda Finance, you will have to provide a vehicle as security. This could be a caravan, motorbike, car or boat.
Can I get a secured personal loan with a bad credit history?
The short answer is yes, we do offer a secured personal loan bad credit. At Jacaranda Finance, we understand that getting personal loans from a bank or other financial institution can be difficult if you have bad credit. Although we will do a credit check, we mainly look at your bank history over the last 90 days as well as your Centrelink income statement (if you receive one). With this information, our highly skilled loan assessment team will do our best to understand your current financial situation and not blame you for your past.
The following are types of loans you may qualify for by submitting an application with us:
Secured Personal Loan
Loan Against Car
Loan Using Car As Security
Loans Secured Against Car
Fast Secured Loans
Loan Against My Car
Secured Personal Loan With Bad Credit History