04 January 2011
Secured Home Loans and its Importance
Home loans have become a familiar term and secured home loans are the best for many who do not have regular income documents. For private professionals it is best to place some property or car or any other documents as security against the new loan. Loans can be secured or unsecured and both types of home loans are available for the borrower.
Secured home loans can be availed by anyone who has a property or home that has a higher value than mentioned in the application of the new loan amount. The private lender or government nationalised banks professionals go through the documents that have been considered for security for the new loan. In case of vehicle the total value of the care is estimated according to its price in that particular year as rates fall with every year of use in case of the car. Taking secured loan helps the individual to use their own property as an asset against the new home loan. It is also good from the side of the lender as they have the original documents of the property or car in their possession till the loan is repaid.
In case of failure to repay the loan EMI it becomes difficult as the borrower may also have to give away their property. The lender in such cases of default has the right to auction the care or property and recover their loan amount. Though it rarely happens as nowadays financial planners help to plan the EMIs and loan amount according tot he budget and financial status of the borrower. Only that which is possible is availed and even the emergencies are taken into considerations and they have plan for warding off the time during crisis and failure to repay the loan. Concessions can be availed in case of secured home loans as it is beneficial to both the lender i.e. financial nationalised banks and lending institutions as well as the borrower i.e. the applicant and taker of the home loan.