4th Jul, 2023
Economic instability is a harsh reality of this life that collateral loans can soften. If the interest rates are soaring through the skies, collateral loans come to your rescue. By definition, collateral is any asset a lender accepts in exchange for a loan.
For added convenience, your credit scores barely matter!
In this article, we’ll dive deep into what exactly collateral loans are and how they can help you get the financing you need, regardless of your financial situation.
Everything comes at a price, but only a fair one. A collateral loan, also called a secured loan, is guaranteed by something you own, the collateral. It helps the lending body gain a sense of security as well. This is because if you are unable to pay back the loan due to any unforeseen situation, the lender will have the right to claim the collateral instead.
Resulting in a mutually beneficial lend.
Considering the various types of collateral loans, some of them are naturally more popular than others. Below we list the options of assets you can obtain a collateral loan against:
Here’s a list of the benefits of collateral loans that will help you make a better decision.
Collateral loans do not rely on your credit history or your finances. So, you never have to worry about collateral loans leaving scars on your finances or credit history. On the contrary, it may even help you build your credit score.
Unlike banking loans, collateral loans are much simpler and don’t require extensive credit checks either. This automatically makes them faster and easier to access. More so, since the borrower is providing collateral, lenders are more than happy to hasten the process of providing funds with lesser paperwork.
Collateral loans have a lower interest rate than unsecured loans. Due to the collateral, the borrower automatically has a decreased risk of default, encouraging the lender to be more generous in the set loan terms.
Collateral loans are available for everyone, whether you are an individual or a business. The only prerequisite of applying for a collateral loan is to have collateral.
At Instant Cash, we provide collateral loans against your paid-off, moveable assets. We provide individuals and companies with immediate cash through a seamless and easy process. We ensure market-competitive interest rates on trouble-free borrowing terms.
Contact us today for more information and an evaluation of your moveable assets.