If you’re looking to borrow money to buy a car, a secured car loan means using the car you’re buying as collateral to secure more flexible loan terms. For example, if you wish to buy a car, but can’t afford to pay the full amount, then by using your car as collateral you might be able to afford to borrow the rest of the money. Offering your lender that security means they should be able to offer:
- Lower rates than if the loan were unsecured
- Flexible terms
- Faster approval
At Greater Bank, we want to offer a loan that is right for you. Use our repayments calculator to help work out what loan terms suit you, so that you can make an informed decision. If you’re still unsure, call us on 1300 763 272 to speak with one of our friendly customer service operators or visit your local branch to speak to an expert today.
What is the difference between secured and unsecured personal loans?
While secured loans present a lower credit risk to lenders, as there is always the option of re-couping money lent using the collateral offered as security, unsecured loans are riskier for lenders as there is no collateral. This usually translates into different interest rates offered by lenders for secured and unsecured loans. Secure loan rates are usually lower, due to the lower credit risk involved, and unsecured loan rates are usually higher.
Another difference between the two loan types is the way they can be spent.
Because a secured loan is for a specific purpose, and collateral (like your new car) is agreed upon up front, the loan amount must be spent on a specific purpose. However, unsecured loans can offer more flexibility in how you spend your credit. This is because unsecured loans usually offer a line of credit that can be spent for different purposes. | Greater Bank
Greater Bank offers both secured and unsecured personal loans that can be approved in as little as 24 hours.
How does a secured loan work?
The most popular secured loans are home loans and car loans; however, there are other types of secured loans for business or personal use.
When taking out a secured loan, most lenders will require you to fill in an application form with details of the loan you wish to take out, why you wish to take it out and information regarding your personal financial situation. This will help lenders gain a better understanding of what you can afford to repay, so you can find the right loan terms to suit you.
Greater Bank offers personal secured loans to fit your needs to help you reach your goals. To find out more click here.