What is secured loan with examples

Secured Loan

About Secured Loan

Secured Loan is a type of loan which lends the money on the basis of security or mortgage. Secured loan is an agreement in which the lender agrees to loan money and the borrower agrees to provide them satisfaction of loan repayment by mortgaging.

Secured Loan is a type of change, in which the lender lends assets for the sum of money and the borrower changes money for assets.Secured Loan exchange things according to the needs or wants. Secured Loan when the asset is under the unlegal owner but offered by their legal owner.

Secured Loan is a type of favourability , under which a borrower can redeem their finance according to their mortgage and asking for. Hence the lender had favorability , in case of default they had favour of securities recovery.

Secured Loan means to provide a mortgage and take over the sum of money for the purpose and repay within the tenure period.With the secured loan , both the parties had a bundle of rights to schedule the credit in form of debits.

Secured Loan is associated with any piece whose value among the market.Secured Loan is a type of agreement in which the lender and borrower exchange their products. Secured loan is similar to another loan which charges for the interest rates and other fees but is lower compared to unsecured loans.

Example of Secured Loan

Mr. ‘x’ had a need of Loan within larger amounts and their credit limit was not up to their requirement. As the Mr.’x’ has the financial assets which have value in the market , and can commit more than their required loan amount but he doesn’t want to sell and exploit it in the market..

Mr.’x’ had an option of secured Loan in which they can secure their financial asset and observe loan on that.After repaying the loan amount , he can free his financial asset.

Reasons for Secured Loan

  • Weaker credit score
  • Quick process
  • Satisfaction to lender
  • Chances of high finance
  • Easy credits.
  • Build good credit score
  • Provides security to mortgage
  • Supports in sudden and emergencies

Purpose of Secured Loan

  • Borrower needs large finance but unable to commend it.
  • To overcome the risk of loaner and borrower.
  • To consume less time on approval of loan
  • Improving credit score
  • Safe mortgage with debts.
  • Secure the asset from exploitation of money lenders or marketers.
  • No other person is associated with a loan such as guarantor , co applicant.

Features of Secured Loan

  • Assets 
  • With the Repaying of Loan , you can regain your financial assets. Even with a particular amount or half of the loan amount can free your flexible part of your asset.
  • Interest 
  • As the Interest rate is lower because the bank has security of payment. Process with other charges will be low or minimized.
  • Maximum Rates
  • Rate according to market value of financial assets due to the environment would favor us , in assuring a good loan amount. With demand for assets , you can consider the maximum loan amount.
  • Security 
  • Even the lender gets security for their loan.Creditor secured with assurance of loan with the weaker credit and with their financial assets by the bank.
  • Existing 
  • Secured Loan is not considered with purchasings , but loan can assure on existing assets which help you to not to define the reasons of Loan.
  • Credit Limits
  • With managing assets of high value and demand ,they had to settle for  the loan or credit value. Bank had to assure the loan which is being asked by the borrower within the limits of their mortgage value.

Types of Secured Loan

As secured Loan is variety of Loan , but with facilities of bank , secured Loan had been classified according to needs and reason for Loan , they are as follows :

  • Home Loan
  • With the Home loan, you lend the paper of the home to the lender and assure money on their market value, Loan amount would be equal or more than it. For continuing reading, check’ Home Loan’.
  • Car Loan
  • With the car loan, you have to change the car paper or sometimes car to the lender for the sum of money for the limited time period of repayment. Car loans would analyse the depreciation and market value and then assure loan according to them and your wants.For continuing reading, check ‘Car Loan’.
  • Loan against securities 
  • Loan against the securities, you have to lend the financial securities such as shares , bonds and units with any term such partnership , company , sole and hindu undivided family. They should be authorized and have proper identity. They are to be valued according to market value.For continuing reading, check ‘Loan against securities’.
  • Loan against property
  • Loan against the property, you have to lend the paper of land  as house, business area, land in any area which is associated with you and your ownership of land. For continuing reading, check Loan against property’.
  • Mortgage Loan
  • Mortgage Loan, you can mortgage anything such as property , vehicles etc. which have value in the market and more than your loan amount.

Eligibility for secured Loan

Secured Loan basis of lending money on security , if the person is eligible with security but not with age and other terms. Here are details for eligibility for secured Loan :

  • Should be the Residence of India.
  • Should be Equal or above 21 years.
  • Should be an earning person.
  • Should be Particular with necessary documents.

Documents required for secured Loan

Secured Loan is a type of security of Loan which needs some documents verification , that security if fake or real with analysis. Here are the documents required for assuring secured loan from Bank :

  • Proof of identity such as aadhar card , pan card , passport , driving license , voter id.
  • Proof of address
  • Proof of signature
  • Copy of legal papers of security.
  • Income statement
  • Gst returns.
  • Job certificate means employed/business/professional.
  • Caste certificates (ST/SC/OBC).
  • All the sheets of previous 2 years such as balance sheets , profit and loss account etc.
  • If special category , then certificate (disable category).

Registration for Secured Loan

For the Registration of secured Loan , you have to follows these steps :

  • Visit the nearby branch of your bank
  • Hold all the particular documents and their copies. 
  • Ask for the Secured Loan
  • Then , select type of secured Loan
  • Fill the form with basic and necessary details.
  • Attach your documents and passport size photo.
  • Submit it to your Bank.

Online Registration

  • Visit official website of your Bank
  • Then , Login your id , or if new then create your id and password.
  • Then , click on the option of Loan.
  • Then , select the option of secured Loan.
  • Then , select on the type of secured loan as in against the property , securities etc.
  • After that , a form will appear , fill with your proper details.
  • Pay the registration fee.
  • Click on submit Button.

In both types of Registration , after the submission of registration form , your bank team analyzes your form and goes with all the details. With these processes , it will consume time. You get the approval of loan soon but within hers (maximum upto 72 hrs).

After this , 

  • Agent of the loaner came to your place to detail for your KYC.
  • Calculate your amount of loan with amount of security.
  • Then , the agent will settle with the terms and conditions with borrower asks and their policies.
  • After that if they agree , then the agent will terminate a contract and both parties mutually agree on it and sign for it. 

For More Information regarding loans and bank terms , please visit our official website “Loan Jankari“. Hope you get answers to your queries.Stay safe and updated, Thank You!