What A Borrower Wants To Know About Secured Personal Loan

Writen by Amanda Pane

What is a secured personal loan?

A secured personal loan is a loan which is taken against collateral and used for personal purpose is called secured personal loan. In UK the property which is used as collateral is a home with sufficient equity in it. A home with no equity in it cannot work as collateral.

What purpose can I use the loan?

With Secured personal loans is offered for accomplishing personal needs. A wide range of personal needs like making improvement of one's home, going out to exotic locations for enjoying holidays, consolidating multiple debts into one loan, bearing medical expenditure, financing education and any such major personal need can be carried out with secured personal loan. But it is not recommendable to use this loan to meet the day-to-day expenditure.

How much can I borrow through a secured personal loan?

As a rule you can take out anything between £500 and £25000 through a secured personal loan. However, the loan amount largely depends upon the value of the collateral you offer. If you offer high value collateral you can borrow a hefty amount. If the collateral is not valued highly you may not be allowed to take out so big an amount.

Can I take a secured personal loan with poor credit record?

Of course, you can. Lenders attitude towards bad credit is changed now. If your present financial condition is stable enough you can qualify for the loan. Moreover, in case of this loan things are different. You offer collateral which guarantees that the lender will have his money back. So, he will not have no hesitation to offer you the loan.

About The Author The author is a business writer specializing in finance and credit products and has written authoritative articles on the finance industry. He has done his masters in Business Administration and is currently assisting Chance 4 Finance as a finance specialist. For more information please visit: http://www.chance4finance.co.uk