Finding a loan that suits your needs can be tough, especially in today’s financial market. If you want the very best deal on a personal loan it is a good idea to apply for a low cost secured loan. These are generally cheaper because they require collateral (see our article what is collateral for more information) to secure the loan making the fees, charges and interest rate lower than any other type of loan. The main downside to this type of loan is that you will risk whatever you have used as collateral if you are unable to make your repayments.
Most lenders will allow you to secure the loan with a major asset such as property, vehicle, boat or other major asset. Lenders that are less discriminating may extend this to jewelry, antiques and other items, but this is fairly rare in the market today. The most common form of collateral for a secured loan is real estate and this is the most likely to be approved. However, taking out a car title loan is becoming quite popular for people looking for a small secured loan.
Low cost secured loans will save you quite a lot over the life of your loan when compared to an unsecured loan. This is generally because the interest rates are lower which will reduce your monthly repayments and/or your repayment terms. You may also be able to afford to pay your loan off sooner, which will also save you money in the long term.