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By Aldrich Chappel
Traditionally, secured personal loans have been
very popular to get urgent finances, to buy a car, to fund a holiday
etc. Modern society is increasingly using secured loans to fund
innovative expenditures like cosmetic surgery, debt consolidation
etc., and the list is swelling day by day. The loans are getting
popular, but are the borrowers able to get the low rates for
their secured loans?
Amazing it might sound, but the answer is a blatant
“No”. A survey shows that a majority of borrowers
shy away from the hard work of shopping around for the low rates
on secured loans. This is indeed a very worrying situation. It
bleeds the borrower from the very first installment and is not
good for the lending market in the long run because the borrower
loses faith and feels harassed. Getting a best rate for secured
loan compulsorily includes a diligent shopping. Every financial
expert, who is worth his salt, will advise you to do it before
you decide on any particular offer.
The process of getting a best rate for secured
loan should start with looking for offers that impress you. They
can emanate from newspapers, websites, media or for that matter
any resource. The important part is that you should note them
down, preferably on a handy notepad.
Now the process of enquiry begins, if you have
taken a loan before and have a positive experience with the lender,
by all means go back to him and present your case. Ask him for
a quote. Since, you are a repeat customer, it is most likely that
the lender will keep you and quote the low rates. Check your
local bank and financial institutions in your proximity. The ‘nearness’
factor might enable them to consider you for a better rate than
the regular ones. One by one; visit every lender that is on your
list. Get a quote from all of them. Ask them about their terms
and conditions, the time taken to get the loan and the overhead
costs for the loan. Jot these facts down on your handy notepad
so that you can easily compare them later.
The most important point to be kept in mind,
while shopping around for the low rates on secured loan is that
you should present the same collateral to them, while making any
enquiry. Don’t fluctuate in the description of your credit
history and financial soundness. In this way the quotes you will
get from different lenders will be judged by the same criteria.
Chances are greater that a lender, which provides you with the
best rate on secured loans is an online lender, this is for the
simple reason that an online lender has the lowest overhead costs
and thus are able to operate at lesser costs than the high street
lenders.
Analyse all the facts you have noted, impartially.
Find the one who is giving the most competitive APR (Annual Percentage
Rates), simple repayment schedules and minimal fees. Stay clear
from variable rate APR. The lenders can tamper these so that a
loan looks very attractive at the start and gradually inflates
in a few months. If you sincerely shop around for the low rates
for secured loans, you will find lenders who are offering APR
from 7% to 25 % or more. So the savings are visible, the amount
that a casual borrower can lose due to his or her slackness is
big enough to make or break a fortune.
After taking a decision, go to the lender and
apply for the loan. Ensure that the rates and terms along with
the fees are the same as they had quoted earlier. There are few
other things that will help you in getting low rates on secured
loans such as a proper collateral, good credit score and sound
financial condition, but other things being the same shopping
for the right lender will ensure low rates on secured loans.
Summary
Most of us take a secured loan but do not get the low rates.
The importance of low rates on secured loans can’t be underestimated,
since they can save a large amount of money over the repayment
period. Shopping around systematically for the right lender is
the key to getting the low rates on secured loans.
Aldrich Chappel holds a master degree in finance and associated with Get Secured Loans, since its inception. To Find Secured loans visit http://www.get-secured-loans.co.UK
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