You need money for an emergency. You approach a friend or a family member but they have no cash to lend you with what you need. You approach lenders. You know that the process can be quite taxing. Add to that the fact that they will ask for requirements here and there. But you need the money badly and you will do everything in your power to obtain the amount for your emergency.
Good thing there is such a thing as a collateral loan. This loan is secured against assets that will serve as collateral for your loan. Lenders will definitely have an easier time approving your loan since there is less risk as compared to loans that do not have any security. On your part as a borrower, however, you will be concerned about knowing which assets you can use for a collateral loan. Here is a list.
For home loans
There are different assets you can make use of when you want to secure a collateral loan from a lender. Basically, lenders will accept your home or vehicle as collateral. Add to this, however, there are still a list of items that can serve as collateral for a home loan.
One is your mortgage or the loan that is secured against a house. In case you default on your mortgage, the lender can repossess your home. Another is your home’s equity where the loan, as the name implies, will be based on the equity of your home. A home equity line of credit also exists. In this type of loan, a line of credit is granted by the lender so you can purchase anything that you want.
For vehicle and title loans
Vehicle loans can be made available to you in two ways. You can obtain the loan from a bank or dealership or from a lender who will be willing to take your vehicle’s title as collateral for the amount you are borrowing. You can secure the loan with any type of vehicle like RVs, boats, vans and cars. Vintage cars are also considered valuable for this type of loan.
Collateral loans for a business
Collateral loans are not exclusive for personal use. Even business owners can avail of this type of loan in case they need help for their expenses. Amongst assets you can make use of as collateral for your business loan are your business equipment like factory machines, tractors and other heavy equipment. You can also use your existing inventory and accounts receivables to obtain the loan you need.
Assets to secure collateral loans will depend on lenders
The assets listed above are basically the ones you can make use of to secure a collateral loan. Depending on the lender, this list may change. Some may consider other valuable things in your home or business that you can make use of to get the money that you need for an emergency.
Remember that your asset or collateral will always be a great option for you to get the money that you need to cover for your current expenses when you do not have enough cash available on hand. It will also serve as a security that your lender needs before granting the loan that you want. This will definitely serve you and your lender’s best interest.
Learn more about obtaining collateral loans in Brampton and look at the options you have when it comes to this type of loan. Do not hesitate to raise your concerns beforehand. Contacting your choice of lender will help in order for you to obtain the amount of cash you need corresponding to the asset you are willing to offer as collateral.