Personal loans taken by homeowners need not necessarily be secured. It is true that more and more homeowners are lured into taking secured loans. Several advantages that only secured loans can let them enjoy are recounted by the loan providers. Nevertheless, homeowners now form an important customer base employing unsecured personal loans to their financial needs. Though the homeowner does not part with the lien on his home, loan providers are not complaining. Being a homeowner connotes credibility, a prerequisite to unsecured personal loans.
Whatever be the form in which personal loans are lent, homeowners continue to enjoy the preferential status. As mentioned above, by the fact that one is a homeowner, the individual becomes credible enough to be lent. Come what may, borrowers will not endanger their home through inappropriate financial decisions. Loans and mortgages, either directly (secured loans) or indirectly (unsecured loans), affect the home through liquidation or by transferring possession of house. This happens in the event of non-payment of the unpaid dues. Consequently, borrowers will be regular in repaying the monthly or quarterly instalments on the Homeowner personal loans. Isn’t this what the loan providers desire? Getting back the amount lent without much hassles will be termed as lower risk. The preferential treatment allowed to the homeowners is the result of this very reduction in risk. The following article illustrates the benefits available only to the homeowners borrowing through personal loans.
First is the number of loan providers that are prepared to lend personal loans to the homeowners. Almost every lender vies for the business of the homeowners. The deals offered include unsecured loans as well. Convenience rules the market. Borrowers will find it easier to locate the loan providers online. An online loan provider has his financial products advertised on its website. Applications listing the loan details can also be submitted online. This is relatively easier for borrowers since they do not have to run every time loan documentations have to be undertaken.
Homeowners conventionally use real estate franchise secured personal loans. A secured personal loan makes use of the equity present in home. Equity is the market value that a home fetches after deducting any unpaid loan, for which home has been pledged. The maximum loan amount can be had on secured personal loan. Up to 80% of the equity present in the home can be raised as loan. Some loan providers are ready to lend up to 125%. The amount lent on unsecured personal loans to homeowners, though not equivalent to secured loans, will be higher than what the non-homeowners get.