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Understanding Secured Loans

Understanding Secured Loans

Secured Loans in India

In this growing world, everybody in some or the other way requires money. That is the finance to meet the expenses. Also, they may not have personal funds or savings to complete those. Such a need can arise for companies. Here, we will discuss secured loans in India.

If we talk about a business, the need for finance can be for expansion, reconstruction or to pay the dues. At this moment the thought of a loan comes into the picture. Now the loan can take in two types-namely secured loan and unsecured loan.

What exactly are Secured loans?

Secured funding is a type of loan where the borrower has to keep collateral of assets or security against the loan. In case of default, the lender has the right to put the asset or security pledged on auction and recover the amount from it. The borrower here does not have personal liability for the loan. The period of loan offered in secured is high with a low Rate of interest. Thus, we at Terkar Capital make an easy process of securing loans to our customers. Our team of experts analyzes each aspect properly and works accordingly.

Features of Secured Loan

  • The interest rates in secured loans are lower than unsecured loans due to the presence of security.
  • Customers’ credit is not the compulsory criteria here, banks may or may not ask for a CIBIL score. In the case of secured loans, the borrower gets a loan even if its CIBIL score is less.
  • The period of the loan can be both fixed and variable. The borrower has the option to extend the period of the loan.
  • In case of default, the lender can recover the amount from the mortgaged asset.

Disadvantage of secured loans

  • If the borrower even after the tenure of the loan is unable to pay off his loan amount, his CIBIL score affects. However, this will also influence his future loans.
  • In case of default, lenders’ companies will seize the asset. An auction will be conducted to recover the amount. So, the borrower will lose its asset, which may affect its business directly or indirectly.
  • The procedure or time required of a loan is lengthy as the lender has to inspect many things right from assets information to borrowers’ business, etc. Heavy paperwork is another disadvantage of secured loans.

Who can apply for Secured Loans?

The businesses or corporates who have a fixed asset and need money for expansion, reconstruction, undertaking new ventures, or paying dues can apply for secured loans.


  • The applicant should be a Resident in India.
  • The age of the applicant should be between 18 to 60.
  • The applicant should possess a fixed asset.
  • Many times there are income-based eligibility criteria for loans but there are no such fixed structure criteria, it varies. The companies have to provide certain income statements or financial statements as per the requirement of the lender.

Why Terkar Capital?

We are one such financial firm in India, that provides hassle-free secured as well as unsecured business loans in India, it is one of the most modernized and highly specialized loan facilitators which understands borrowers’ needs, strengths, and weaknesses and works hard to provide the best services. So whenever it is raising funds, it is Terkar Capital.

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