FAQs

The reference to secured with secured borrowing is the security for the lender provided by the collateral provided. The risk for borrowers is losing the asset/collateral if they default on the financing.

Interest rates on secured funding are typically lower than unsecured funding. Making secured comparatively cheaper than unsecured.

Vehicles may be used as collateral for secured funding where they are not under finance and are covered by insurance.

An asset-backed loan is where the borrower provides the lender with an asset against the funds borrowed.

Most lenders will offer fixed interest rates on secured personal financing. Some lenders may offer the option of variable rate financing if that is preferred.

Borrowers may offer a range of assets and goods of a value equal or in excess of the amount borrowed as collateral. They may include vehicles, boats, caravans, real estate and investment assets. The collateral must not be under finance and must be insured.

Secured funding is used to purchase many goods such as cars, motorbikes, caravans, boats, personal goods for the home, IT and other items. This type of credit may also be used for travel, medical expenses, education and other purposes, subject to lender approval.

Yes. When purchasing a boat, the borrower may offer the vessel as security against the funds borrowed.

Yes. Even though lenders have security with the collateral offered, the credit score and history of the applicant will still be reviewed as part of the application process.

An alternative to collateral-based credit is an unsecured personal loan.