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Understanding Secured Loans

Understanding Secured Funding

What is Secured Funds?

In this growing world, everybody in some or another 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 funding 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 funding comes into the picture. Now the funding can take two types-namely secured funding and unsecured funding.

What exactly is Secure funding?

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 for our customers. Our team of experts analyzes each aspect properly and works accordingly.

Features

  • The interest rates in secured funding are lower than in unsecured funding due to the presence of security.
  • Customer credit is not a compulsory criterion. Here, banks may or may not ask for a CIBIL score. In the case of secured funding, 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

  • 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 for 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 Funding?

Businesses or corporates that have fixed assets and need money for expansion, reconstruction, undertaking new ventures, or paying dues can apply for secured funding.

Eligibility

  • The applicant should be a Resident of 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 a 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. We arrange secured instruments for your business situations. So whenever it is raising funds, it is Terkar Capital.

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