Secured loans are availed by placing an asset as collateral, which serves as a security against the loan amount, i.e., in the event of too many delays or frequent defaults - unintentional, incidental, or intentional - the lender can take over the pledged collateral. To reap the benefits of a secured deal, the borrower must pay his EMI’s (Equal Monthly Instalments = Principle + Interest) on time and in full.

As secured loans are very safe for the lenders, the loan requests get quick attention. Other encouraging characteristics are:

-Competitive APR (APR = Nominal Rate + Loan Processing Charges) depending upon the repayment method - fixed or capped or flexible
-Negotiable payback terms and loan conditions - early pay offs, extended repayment period, grace period, hidden charges, payment holidays, penalties, payment protection plan (PPI), etc.

Generally, a secured deal has:

-An amount range of £5,000 to £75,000
-An APR range of 7.9% to 19.9 % Variable (typical rate is 13.55 % APR Variable)
-A compensation term range of 5 to 25 years

However, a person with an impeccable credit history may get a better deal.

Two major affordability parameters that play a very crucial role in loan approval procedure are:

-Credit history - good or average or bad
-Debt to income ratio (DTI = Debts/Income) - current financial standing

Depending upon the above-mentioned parameters, loan seekers are categorised as prime customers, near prime customers and sub-prime customers. The sub-prime customers are further sub-divided as light (low adverse credit), medium (medium adverse credit) and heavy (high adverse credit)

Opting for a secured loan is a great idea when one:

-Has a big monetary requirement
-Has a bad credit history/record
-Has been denied an unsecured loan

With the advent of the incredible Internet technology, one can easily shop around from the comfort of his home. The online presence of numerous financial companies has made personal loans more accessible and the entire loaning process very convenient.

-Go through the list of FAQ’s, as one can find most of the answers there
-For personalised information, send an email to the company or call their toll free number
-Get a couple of free no obligation quotes to get a fair idea of the market