Secured Loan Collateral

Basing it on its term, a secured loan is a type of loan that includes a security through a collateral to protect the lender. In a sense, this is a fairer type of loan because the lender wouldn’t be obliged to put in huge interest rates because there’s an asset or a property in place, and the borrower might lose this property or asset if he or she defaults payments.

But most of the time, the question is not about how much the granted amount will be – it’s about what type of properties or assets can be put down as a collateral.

Backing a secured loan through a collateral is one of the ways that can increase the chances of approval. Although it’s not something that can guarantee two thumbs up, it can influence the decision of the lender, approving a loan of a borrower.

Types of Collateral That Can be Used

In the most typical sense, a collateral can be any asset or property that is allowed by law that can be used to get or secure a loan. Usually, lenders would want collaterals that can easily be sold for cash or that can be liquidated easily.

Usually, the collateral’s value will be put parallel to the amount of loan that will be granted the borrower.

Vehicles or Automotives

A collateral can be a car, truck, motorcycles, boats, SUVs, or other vehicles that can be used or can be sold easily.

Real Estate

It can be any type of real estate that includes financial equity after the deed is transferred. So long as it’s legal and it has the capacity to be sold easily or if it’s making money, it’s going to be acceptable.

Bank Accounts

This can include anywhere from savings accounts, certificates of deposit accounts, to checking accounts and even other types of accounts that have money in it.

Insurance

Many people aren’t aware of this but insurance can also be used as secured loan collateral. It can be insurance policies and life insurance.

Jewelry

Jewelry can also be treated as a high-value property, if it’s real. It can include precious metals, collectibles that are of high value, and other gems and diamonds.

Out of all the collaterals you can use for a secured loan, it’s going to be dependent on how much money you need and how seriously you need it.

Finding an institution or a company that can give you a higher loan amount than the value of a collateral is rare, and in most cases, it’s not allowed. The lender, of course, wouldn’t bear the thought of losing profit or money over a loan and that’s why they always partner it up with the type of collateral you get.

But here with us in SoFlo Funding, we can help you with higher value and amounts of loan that can be higher than the value of the security or the collateral you’ll put in place. We can collect and approve all sorts of secured loan collateral from jewelry, automotive vehicles, bank and savings account, stocks, bond, mutual funds, and insurance ,and of course – real estate properties.

Our Secured Loans

You’ll definitely love the repayment plans and terms we have here at SoFlo Funding, for our secured loans, there are more benefits and advantages you’ll find than wrong ones.

Compared to other companies, the secured loan collateral we’ll ask would never be a game changer – we accept all types of properties as long as it is of value and as long as we’ll benefit from it.

With our secured loans, you can enjoy:

• Higher loan amounts and values
• Easier and more flexible repayment terms
• Considerations on the terms and agreements
• Lowest interest rates – you can even get a 0% interest rate on the first 9 to 21 months