FAQs

Collateral is the security or guarantee provided by borrowers against loans. Collateral may be the goods being financed, other assets, or a personal guarantee.

Unsecured credit is not secured against the goods being financed. Secured credit uses the goods being financed as collateral. Interest rates are higher for unsecured credit. Approval criteria, terms, and borrowing limits can also be different.

Interest rates on no collateral credit are shown by lenders as Unsecured Personal Loans, or just Personal Loans. These advertised rates are a guide only. All rates are individually offered following an assessment of each application.

Where a used camper trailer is not accepted as collateral for a secured loan, an unsecured financing product may be applied for.

Unsecured credit products are widely used by consumers for many purposes. Any implied ‘safety’ reference may be drawn from the term ‘unsecured’. The unsecured term refers to the lender not having security for the funding. Once confirmed and settled, the borrower makes their monthly payments as scheduled.

All variations, makes and models of RVs may be eligible for credit without collateral. As the vehicle is not the subject of security, the application is assessed on the applicant’s credit profile and income level, not aspects of the vehicle.

Purchasing a share in a RV with friends is a purpose which may suit unsecured credit.

Unsecured personal credit may be used for many purposes. Applicants may apply for a loan to cover the purchase price and the renovation costs of an old caravan. Approval is subject to lender assessment of the application.

The borrowing limit approved for unsecured credit is determined by lenders in assessing the income level and credit profile of the applicant. As the vehicle is not the subject of security for the credit, the purchase price would not be a key issue. The total amount of the loan requested, relevant to income, is the key issue.

If a borrower fails to meet the no collateral credit payment schedule and goes into default, the lender can follow a legal process to recover the outstanding money.