Secured And Unsecured Loans: Very Popular Among Aussies
Availing a loan is no longer considered as a dragon any longer as it was thought over the past two decades
. Nowadays, obtaining a loan has become very simple and easy process as financial experts have designed according to the loan seekers conception and compliance. For fulfilling your needs and demands, a borrower can checkout the list of loans in the market. There are many types of loans available in the Australian market. The secured and unsecured loans Australia are very popular personal loans and a choice of many Aussies.
The secured loan is a cup of tea for those borrowers who can afford to pledge some valuable collateral against the approval amount. This loan is given to individuals or business enterprises that are ready to place some secured asset. On other hand, the borrowers who do not wish to use their asset as a security or don't have any valuable asset can avail unsecured loans. The money offered is based on some valuable credentials like income, credit score, repaying capability, etc. The loan approval is faster than secured loans as no lengthy paperwork is required. The features which distinguish these two loans from each other are given below:
Loan amount: The amount offered in secured category is larger than unsecured loans as collateral plays an important in sanctioning of loan. Usually, the amount ranges from AUD 5000 to AUD 75000. The borrower can even ask for greater amount depending upon his collateral equity value. In contrast, the amount offered in unsecured loans is pretty lesser than secured. The amount approved in is category ranges from AUD 1000 to AUD 25000.
Repayment period: In the secured loan option, repayment period is comparatively longer and flexible. The amount sanctioned in this category is for a period of 10-25 years. On other hand, repayment is shorter as lender has to bear the risk of his amount. The amount approved for a period of 6 months-10 years.
Interest rate: The lenders money is safe in secured category so he charges reasonable or affordable rates over longer period. While, in unsecured category, rate of interest is comparatively higher as lender has to bear the risk of his amount.
The amount availed can be used for meeting varied multiple needs and luxuries like home renovation, purchasing of luxury car, debt consolidation, wedding expenses and so on.
by: Keith Kelly
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