The Hidden Advantages of a Collateral Loan

3 min read By Kevin Joshua Ng on May 24, 2021

Many of us are quite intimidated by the fact that secured loans require a collateral in order to apply and be approved. While this may be case, much hasn’t been said about the inherent advantages it has over unsecured, non-collateralized loans.

In many ways, secured collateral loans might just be the right loan for you–and we’re going to enumerate them one by one here as we discuss the hidden advantages of a collateral loan.

A perfect credit history is not required.

Unlike most loans (unsecured loans, bank loans etc.), secured collateral loans don’t require an outstanding credit history for you to get approved. Since collateral loans are mainly contingent on the collateral on hold and the current income or capacity to pay of the applicant, lenders like GDFI that offer ORCR sangla loans make it possible for car owners to have another option on getting a loan.

A secured loan may give you a better chance of getting approved vs. unsecured loans.

Depending on the collateral, a secured loan may actually give you a good chance to get approved compared to unsecured loans. This is because from a loan provider’s perspective, the more valuable your asset-as-a-collateral is, the lesser the risk. The only downside is, since this is a collateral loan, your asset can be repossessed if you don’t make good on loan repayments. So make sure that you can maintain a consistent monthly payment schedule.

Collateral loans can offer a larger loanable amount compared to unsecured loans.

Similar to the earlier point above, the loan amount you’ll be able to get with a collateral loan depends largely on the current market value of the collateral. For example, ORCR sangla loans from GDFI earmark 70-80% of the fair market value of your vehicle as the possible loanable amount. Unsecured loans compute their loanable amount on your current income. So if your car is fairly new, it still holds much of its value and you can get a larger loanable amount.

Secured collateral loans have some of the lowest interest rates in the market today.

Unsecured loans such as bank loans, cash loans, and personal loans usually start at 1.5% interest rate to as high as 4%. With secured collateral loans, interest rates are lower. To give you an idea, a GDFI ORCR sangla loan only has a 1.3% interest rate.

Spread this over a year and you’ll actually pay 2.4% more with personal loans vs. collateral loans, and that’s if you get approved for the lower end of the interest rate range. This all comes down to the collateral giving lenders less of a financial risk. Therefore, they’re able to give some of the lowest interest rates for a loan in the market today.

You can start building a good credit history with secured collateral loans.

If you don’t have a a history of borrowing from financial institutions yet or if you need to improve your current credit history standing, starting off with a secured collateral loan can help you in that front.

Of course, this comes down to making complete payments on time. In the long run, a good credit history can open up more and even better opportunities for you financially.

Now that you understand the inherent advantages of a secured collateral loan, perhaps you can begin today by applying for an ORCR sangla loan.

An ORCR sangla loan is a specialized kind of collateral loan made with car owners in mind. Interested? Here’s how you can start your application:

Who can apply for an ORCR sangla loan?

• Filipino citizen
• 21-65 years old
• Car/truck owner with vehicle/s fully owned under their name

Requirements for an ORCR sangla loan

• 2 valid, government-issued IDs
• ORCR of vehicle/s (to be used in determining the loanable amount and as collateral)
• Latest electric or water bill. If not in the name of applicant, you must submit proof residence (any document under your name with your current address)
• Tax Identification Number
• For employed/professionals: 3 months payslip, Certificate of employment, Bank statements
• For OFWs: 3 months proof of remittance
• For business owners: Business papers such as business permit for sole proprietor and corporations

Begin your application now at www.ecomparemo.com/personal-loan/orcr-sangla or click the button below.