Secured Personal Loan
A secured personal loan is where the borrower provides some form of collateral to secure the the debt. Collateral or security is usually an asset that the lender can assign a value to, such as a vehicle. This type of personal loan attracts a lower interest rate than that of an unsecured personal loan. This is because there is less risk for the lender. If the borrower fails to make loan repayments, the lender can sell the asset to repay the loan. Dictionary.com defines collateral as "something pledged as security for repayment of a loan, to be forfeited in the event of a default."
Assets You can Use as Security
You can use various assets as security, with the most common being a car. Other vehicles, such as caravans, motorbikes and boats are also suitable to use as collateral.
If you are considering purchasing a vehicle then a secured car loan may be a more cost effective solution. Call and speak to one of our experienced finance experts to discuss your individual circumstances, to determine the best loan option to suit you.
Uses of a Secured Personal Loan
A personal secured loan can be used for a variety of purposes including debt consolidation loans. If you are repaying a number of loans at high interest rates, a debt consolidation loan may be a great way to simplify your life and reduce your overall monthly loan repayment amount. When life throws you an unexpected curve ball funds can be used for car repairs, medical expenses, education fees or home renovations. Maybe you need some TLC and a dream holiday or some new household furniture is on the cards. Whatever you need or want, AAA Finance can help you secure the funds to make it happen.
Advantages of a Secured Personal Loan
There are many advantages of using your car as security for a personal loan. These include:
- Competitive low cost interest rates.
- Interest rates fixed for the term of the loan.
- Option to pay out the loan at any time.
- Terms of up to 7 years.
- You can borrow from $5,000 to $70,000.
Apply Now
Call (07) 5493 1222 or make a Online Loan Enquiry today to discuss a loan using your vehicle as collateral. One of our friendly finance experts can take an application over the phone in 5 minutes. We then evaluate your individual circumstances and select the lender that best suits your needs. Our experienced team of finance brokers will get you the best personal loan rate available.
We will need some documentation from you to complete your application. Identification, usually your drivers licence and Medicare card, proof of residency such as your rental tenancy agreement or rates notice as well of proof of income in the form of payslips. Finally we will require the registration papers of the vehicle you want to use a security.
Personal Loan Calculator
Not sure if your loan repayments will fit within your budget? Then try out easy to use Personal Secured Loan Calculator. Our calculator estimates either a fortnightly or monthly loan repayment. This calculation is based on the loan amount, loan duration and lastly the interest rate. Loan terms can vary from 1 to 7 years and your interest rate depends on your profile and previous credit history.
