Secured Loan
Secured Loan Terms by Global Syndicate Finance
Interest Rate: 8% per annum.
Loan-to-Value Ratio: Up to 80% of the property value.
We offer financing against mortgage at an interest rate of 8% per annum, with a minimum loan amount of ₹5 Crores.
The loan term can range from a minimum of 2 years to a maximum of 10 years.
This option provides businesses and individuals with liquidity by leveraging their property as collateral (Mortgage Deed).
What are the assets that can be used as collateral loans?
Secured loans are backed by various types of collateral depending on the loan type and purpose. The following are some of the common types of collateral used to back a secured loan
1. Residential and commercial properties
2. Land as a collateral for loan against property
3. Securities such as shares and mutual fund units
4. Gold in the form of bars, coins, and jewelry
5. Cash value of life insurance policies
6 Fixed deposits and other savings instruments
7. Vehicles for vehicle loan
8. Future payments and other personal valuable properties.
Types of Secured Loan
There is a wide range of borrowing options available under secured loans, each tailored to specific needs and financial situations. These secured loan types offer flexibility to individuals to access financing while minimizing risks for investors. For instance, a home loan is a type of secured loan, which can only be used for constructing and buying a new home. The loan amount cannot be used for any other purpose, which reduces the risks of wrong usage of funds.
Loan Against Securities
Loans against securities are offered when you pledge your shares, mutual fund units, or life insurance policies as collateral to the bank or NBFC. A loan against securities is typically offered as an overdraft facility, where you pay interest only on the amount you use.
For example, the bank offers you a Rs 2 lakh loan by pledging your securities worth around Rs 4 lakh. You draw only Rs 1 lakh from your loan account and repay the amount within six months. Here, you will pay interest only on the amount drawn, i.e., Rs 1 lakh for six months, not on the entire sanctioned loan amount.
How Does Secured Loan Work?
A secured loan works on the fundamental principle of collateral security. When an individual applies for a secured loan, the lender evaluates the creditworthiness of the individual and the value of the collateral to determine eligibility.
If the value of the collateral is more than the loan amount and has a good credit score with a steady income source, then the lender will approve the loan and disburse the loan amount to the borrower.
The borrower agrees to repay the loan amount along with due interest and fees according to the agreed-upon terms, and in failure to repay the loan amount in full, the lender reserves the right to sell the collateral to recover the outstanding balance.
Once the borrower repays the entire loan amount with interest and fees, the lender releases the claim on the collateral.
Because the risk of loss on secured loans is low for lenders, they can offer lower interest rates to borrowers than on unsecured loans.