A Secured Loan is a loan that requires the borrower to offer the creditor some form of asset, such as a car or property as collateral until the loan has been paid off. After the loan has been settled in full, the borrower will retake full possession of the asset. If the borrower fails to pay off the full amount of the loan, the creditor can take possession of the asset and may sell it in order to regain some of the money originally borrowed.
Advantages of a Secured Loan
Since the lender can take possession of an asset if you default on payment, their risk for lending you the money is lower. This means that the money available to borrow on this type of loan may be higher than other loans. You are also generally given a longer repayment period. Home loans are a form of Secured Loan where you borrow money against your home.
If you think a Personal Loan in the form of a Secured Loan might suit your needs, do your homework by comparing quotes on Hippo.co.za to find a suitable deal for you.
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