Everything to Know About Secured Loans in India

Everything to Know About Secured Loans in India

Even if you are not planning to use a financing service anytime soon, it's good to know about available alternatives. These options can allow you to borrow quick loans, in case of an emergency. Moreover, utilizing financing services will not disturb your current financial situation.

The financing method we are going to discuss in this article is secured loans. These loans are provided by the lenders throughout the country. Hence, a borrower can apply for it anytime.

In case this is your first time reading about secured loans, then we suggest you continue till the end. Here you will be able to learn about everything related to this financing alternative.

Besides, we will even give you reasons as to why you should opt for a loan against securities.

What is a secured loan?

A secured loan is a financing alternative, which is based on using borrower’s investment as security. In simple words, when a borrower submits collateral, along with his loan application, he is opting for a secured loan.

The reason it is called a secured loan is that the nature of the transaction for the firm is risk-free. It is because the financing firm takes over the ownership of the borrower’s investment. It is done till the time a borrower is able to repay the loan in full.

Apart from this, loan against securities is also one of the quickest finance generating method available. Unlike other options, it only takes a couple of days for a borrower to acquire funds through this method.

Besides, it is also the most transparent funding alternative that borrowers can utilize.

Why should you opt for a secured loan?

1. Easier to borrow

Nobody has months on end to spend when they are looking to generate funds. Thus, opting for a secured loan is easier for borrowers. This financing alternative can give you almost immediate funds, due to its nature.

In other words, since you have your investment kept as collateral, you will be able to enjoy the service quickly.

2. High funding limits

A fact about secured loans that most borrowers don't know is its funding limit. One might imagine, that loan against securities cannot give you an extensive limit.

However, the truth is that you can enjoy a limitless range of funding, which goes from low to high. It means you will be able to generate finance for all your expenses easily.

3. Long loan tenor

Another reason why borrowers should opt for a secured loan is due to its long tenor. You do not have to repay a loan against security immediately, which makes it great for long-term usage.

Besides, since you use your investment as collateral, the financing firm is also not in a hurry. The re-payment tenor is very flexible and easily you can repay your loan amount without any hassle or difficulty.

4. Lower interest percentage

The last feature that makes a secured loan worth considering is it interest percentage. Since the financing firm has your investment as a guarantee, they keep the interest rate pretty low.

It makes the service more feasible for borrowers. Besides, it will not put a lot of burden on your monthly expenses and you can easily pay the interest rates without adding any burden on your monthly budget.

Leading NBFCs of the country also offers pre-approved financing deals for services like a loan against shares, home loan, personal loan, and more. These offers have been created to make the loan transaction completely hassle-free.

You can compare the various lenders across the country and compare all the factors to acquire secured loans which are best and suitable for you as per your needs.