How to Get Secured Loans Against Property

The use of property as collateral is a common way to borrow money. If the borrower fails to fulfill the terms of the loan, the lender may take possession of the property. Prlog.org describes a secured loan as one "given or disbursed against the mortgage of property. The loan is given as a certain percentage of the property's market value, usually around 60% - 75%."

Step 1

Do your homework. If you're unable to repay a secured loan, you risk losing your property used as collateral. Weigh the pros and cons prior to applying. Identify the lender that offers the best terms.

Step 2

Review the eligibility requirements and determine if you are likely to qualify before applying. Eligibility criteria includes income, savings, debts, value of property mortgaged and credit history.

Step 3

Complete and submit an application, then wait for the lender's decision.

Warning

Do not make more than one application at a time. Multiple applications can damage your credit history.

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