loans

What are the benefits of a secured loan?

Did you know that the secured loan is an excellent option for those who are negative? Find out how it works and if it pays off for you.

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Find out if a secured loan is for you

Descubra se empréstimo com garantia é para você
Find out if a secured loan is for you

Ever wondered if a secured loan would be right for you? Nowadays, organizing financial life, acquiring new assets, achieving stability is the dream of many, however it is not enough to want it, it is necessary to fight.

Therefore, in some moments it will be necessary to take actions that guarantee the path to the final result. At that moment, those who need to organize their finances need to have an adequate loan to pay off debts or make investments.

So, even if negative, an interesting option is the one that allows the guarantee of assets to obtain the loan. Below you will understand how it works and if it compensates in your case.

What is a secured loan?

O que é empréstimo com garantia? (Imagem: Konta Azul)
What is a secured loan? (Image: Blue Konta)

A very common modality in financially prosperous countries like the United States and also in Europe, it has become popular in Brazil for demonstrating effective financial results to those who request it.

The secured loan is therefore a type of credit that allows obtaining considerably high amounts, with a long term for payment and low interest rates, contrary to what happens with most types of loans.

It is an exchange between the applicant and the supplying credit company that guarantees advantages and benefits for both sides. This is because the company will receive good amounts of interest in the long term and will still have the guarantee of receiving the amount due.

As for the applicant, there are greater benefits that we will mention below, but beforehand it is possible to point out that the interest rates are the lowest on the market, the payment terms become longer and it is possible to request much larger amounts than you would normally be able to.

Therefore, in a practical way, we can say that this type of loan is a way for the bank to use something you have as a way to guarantee that you pay all the debt at the end of the term.

How does the secured loan work?

Como funciona o empréstimo com garantia? (Imagem: Cash Me)
How does the secured loan work? (Image: CashMe)

You must have wondered how this type of credit works, right? After all, it is not as popular as others that we have already mentioned here on the site.

So, it works as follows: As the name says, an amount is loaned with something in guarantee to the bank or fintech that lends the money. Therefore, real estate, automobiles, jewelry and other valuables can be used.

Then, the client requests a certain amount and indicates to the financial institution what asset he has to guarantee that amount. An assessment is made to understand whether the “exchange” is worth it for the institution and if so, they establish the contract.

Thus, the customer tells the company that it will not have any risk of default with him. After all, if payment is not made within a pre-defined time in the contract, the guaranteed good can be sold or auctioned to settle the amount owed.

Therefore, with this line of credit, an important prerequisite is to have an asset registered in your name and that has market value. Then just sign the loan agreement. 

During the time the amount is borrowed, what was used as collateral in the negotiation is registered in the name of the bank. However, even so, the owner and requesting the credit can continue to enjoy it.

Using technical terms, it is stated that the asset is sold to the bank, that is, if necessary, it can be legally requested for sale. It only goes back to being fully owned by the customer after the contract is discharged.

Who can apply for a secured loan?

Quem pode solicitar empréstimo com garantia? (Imagem: Freepik)
Who can apply for a secured loan? (Image: Freepik)

Anyone who has an asset to offer the bank as collateral can apply for this type of loan, whether an individual or a legal entity. Therefore, the ease of approval is much greater than other credit formats.

However, each modality has small requirements. See below!

Loan with property guarantee

Empréstimo com garantia de imóvel (Imagem: Pixabay)
Loan with property guarantee (Image: Pixabay)
  1. A credit analysis is carried out to check the customer's payment terms;
  2. Physical and legal analysis of the property offered as collateral to understand whether the documentation is in order;
  3. It is possible to apply for third-party property, provided that the owner participates and authorizes the operation;
  4. It is only possible to dispose of the property to a bank or credit agency.

Warranty with Vehicle

Garantia com Veículo (Imagem: Azulis)
Warranty with Vehicle (Image: Azulis)
  1. The vehicle being paid off under warranty;
  2. Vehicle owner can only perform the process;
  3. In the vast majority of cases, only vehicles less than 10 years old are accepted;
  4. There are no debts, IPVA or fines;
  5. Good conditions for sale if necessary.

Private Consignment

Consignado Privado (Imagem: Cantarino Brasileiro)
Private Consignment (Image: Cantarino Brasileiro)
  1. Loan request with guarantee only from employees working in partner companies that allow the discount;
  2. Up to 35% of your monthly net income for consignment commitment;
  3. It is not possible to choose the bank if you are a private employee;
  4. Required at least 3 months of signed portfolio to guarantee the contract.

How to apply for a payroll loan

Do you want to know how to apply for your payroll loan from Inter bank? So find out right now!

Vadvantages of this type of loan

Vantagens desse tipo de empréstimo (Imagem: Azulis)
Advantages of this type of loan (Image: Azulis)

Surely you want to know then the advantages of secured loan. After all, every action within the financial market needs to have concrete advantages for us to accept, especially when it comes to disposing of an asset to other people.

Of course, each case needs to analyze the characteristics of the credit individually to understand how far it is worth it. The advantages for person A may not be as attractive to person B. So check out some to understand if it makes sense for you to apply.

  • lower interest: Contrary to common molds, this modality offers lower interest rates, since it does not pose as many risks to the company. Therefore, fees start at 1.15% per month, while a regular credit starts at 6%;
  • Possibility for negative: Those with a dirty name need not complain. This is because the secured loan also serves those with restrictions on their CPF;
  • Spending freedom: You can use the money any way you want without being accountable, unlike financing, for example, where you have to use the money for a specific purpose;
  • Extended term for payment: A big advantage is the extended term. So, while conventional loans allow up to 24 months of term, here it is possible to get up to 180 months to pay off the debt;
  • Highest credit value: A big advantage is the amount granted as a loan. This is because the possibility is up to 60% of the collateral asset's market value;
  • There is no need to deliver the good: A great advantage is that you can continue to use the property or car that you have decided to place as collateral. It is alienated to the bank, but is only requested if you fail to make the payment;

What precautions to take when taking out a loan?

Quais cuidados tomar ao contratar um empréstimo? (Imagem: Crédito Folha)
What precautions to take when taking out a loan? (Image: Credit Sheet)

While we have many advantages in applying for a loan, we also have some possibilities of falling into pitfalls. Therefore, some care must be taken when applying.

Sometimes we despair in the search for credit that we do not see when we are falling into a scam. Therefore, we hope that the tips below will help you to differentiate scam opportunities.

Even if your reasons are urgent and you need to face the first opportunities, a minimum of calm and reflection will help you in the future. So check out the tips and follow to avoid problems.

  • Make good financial planning: Among the tips to follow when applying for a loan, plan well. So then, you guarantee good purpose for the borrowed money and avoid obstacles with your accounts in the future;
  • Look for trusted companies: First of all, look for the company's reputation and understand its position in the market. With that, find out if it's safe to alienate your good to her so you don't suffer blows;
  • Have a financial reserve: Another great importance to not generate future problems is to have a financial reserve. That way, if things get tough for a month, you'll have a resource to fall back on;
  • Read the contract carefully: Many people, anxious to have the money in their account, do not read the contract. This can make you go into a big cold. Know what you are signing and what you are accepting at that moment. After all, once signed, there is no going back without consequences;
  • Pay installments on time: It seems cliché to say, but it is important to pay the installments on time. Thus, you avoid problems with the bank;
  • Compare interest rates between companies: There are numerous companies that provide this service. So, compare rates and contract terms to choose from.

Beware of negative loan scams

The internet is full of malicious websites and loan scams. Therefore, you need to be careful when applying for a negative loan online. Check out!

Loan terms

Modalidades do empréstimo (Imagem: Pixabay)
Loan terms (Image: Pixabay)

As mentioned above, there is more than one type of secured loan, with several possibilities. So, see what modalities are allowed to make the secured loan.

  • Property guarantee: The first option is the property guarantee. Therefore, anyone who owns a house, apartment, land, commercial area in their name and paid off can use it. This modality guarantees a very significant amount of credit, as it allows up to 60% of the value of the asset for loan. Therefore, a property valued at R$ 200 thousand can yield a loan of up to R$ 120 thousand.
  • Car warranty: Using the car as collateral for a loan is the most common modality among Brazilians. In addition to being quick and easy, it offers a minimum interest rate of around 20.80% per year. For this, the vehicle needs to be paid off to be sold to the credit company. It is possible to request from R$ 5 to R$ 150 thousand depending on the value of the vehicle's Fipe table.
  • Payroll: Another option that caters to those who work and have a fixed record is the payroll loan. In this case, the guarantee for the bank is your salary, as the installments will be debited directly to the bank when your payment is made. This format is intended for civil servants, retirees, pensioners or employees of private companies that have an agreement with credit companies.

So, evaluate now which of the three modalities is the most appropriate in your case and what type of guarantee you can provide to the bank to then think about the amount to request.

Is a secured loan worth it?

Empréstimo com garantia vale a pena? (Imagem: Cantarino Brasileiro)
Is a secured loan worth it? (Image: Brazilian singer)

Well, with the topics above showing how it works and the advantages of the secured loan, it is clear that it is worth it for a large number of Brazilians.

Above all, the conditions that make it worthwhile are the interest rate, payment terms and ease of application. Compared to any other loan on the market, there is no denying that it is very interesting.

In addition, this loan is worthwhile because it does not force you to give up your property. You place it as collateral, but are assured that you will be able to use it until you make the regular payments, settle the amount and then cancel the sale.

There are many advantages in one process, right? So it's definitely worth it!

Conclusion

Conclusão (Imagem: Economia Cultura mix)
Conclusion (Image: Economy Culture mix)

Whether it's to clear your name, study a new profession, regularize your finances, deal with a health situation, take the dream trip or make an investment, a loan is therefore a very interesting option.

However, many people do not get credit for many reasons: dirty name, low score, lack of proof of income, minimum number of installments for payment. So, secured loan has become one of the best options for these people.

Here you saw what this type of credit is, how it works, its advantages, precautions when applying and other information about the modalities. Now, it's time to apply for yours and accomplish your goals.

Remember to have good planning so that the money is not used in vain and you see a positive result in the medium and long term from this action and the monthly payments. Continue with us and follow other content that will help you with your finances!

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About the author  /  Heloisa Trindade

I'm Heloisa Trindade, journalist at DRT 1424/MS in Campo Grande, graduate in publicity and advertising at Estácio de Campo Grande, editor and content producer for 4 years. My passion for reading and writing came since I was a child, influenced by my mother. In the midst of a financial crisis, I discovered that I could use my passion to generate income and that's when I started my first blogs. My goal is to always deliver true, quality content and information to our readers.

Reviewed by  /  Junior Aguiar

Senior Editor

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