Banks that do Secured Loans

Guideline for loans - Money lending - Loan options

Many creditors provide loans. In our guidelines you will find advice on how to find the right loans for your specific needs. Personally-granted loans, sometimes referred to as uncollateralised loans, are granted by banks and other finance institutions. It differs from an overshoot or debit because it allows you to lend a set amount over a set period of time, usually at a set interest fee.

Such loans are available from a selection of creditors and usually vary between £1,000 and £50,000. You are not "secured" against your home and may therefore be suited to a broader spectrum of individuals and conditions. The loans are available to those who fulfil the lender's conditions (an essential condition is a young person of at least 18 years of age).

Interest rates you will be paying depend on the length of your repayment distribution period and the amount you use. They are loans that are "secured" against your house. It is only available to those who own or have a home loan and who have enough capital in the home to cover the amount they want to lend.

When you take a secured credit, you agree that your home can be used as collateral against the indebtedness and could be taken as full or partial redemption of the indebtedness if you were not able to make the stipulated repayments. A few creditors may give a better interest on a secured credit, especially if you borrow more.

You should, however, only ever consider taking out one of these loans if you are sure that you can repay it quickly. Loans can be very costly.

When you are in arrears with the repayment of the credit, further interest and dues are payable. Be sure to be clear about all your dues and expenses and understand what could be going on if you miss out on a payment. When two loans have the same annual percentage rate of charge but are redeemable over different periods, the overall costs are different.

Annual interest contains the entire interest and other costs per year. So, if a credit is to be repaid over a longer term, this credit will charge you more interest. Annual interest will cover the costs of interest and fees, but make sure you know the real amount you will be paying back each and every months, and whether the interest rates are set or floating.

Should the repayment be higher than you can undertake, you might consider lengthening the repayment period of the loans. It will give you lower total interest rates, but will probably mean more total costs as you pay more interest. Watch out for all costs.

It can give more to the costs of a credit than the interest. Verify that there is a fine if you decide to pay back the credit early. And if you pay too late, e.g. because a direct debit rebounds, you can be debited by the credit institution and your local branch.

Ensure that you are informed of all cargoes in advance.