Secured & Unsecured Loans

The Australian Lending centre is a one stop shop for all loan products, specialising in Alternative financial products suitable for most Australians, regardless of your current circumstances.

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No impact on your credit score

Secured Loans can help You…

Did you know the equity you build in your property can be used to increase your wealth? At ALC you can use this equity to buy a 2nd property, get a loan for a holiday or even refinance so you are paying a lower interest rate! Even if you have poor or bad credit we can work with you to get a secured loan that is right for you.

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What is a secured loan?

If you to need to borrow a large amount of money, require a long loan term (over 5 years) or you have bad credit, then lenders are most likely to offer you a secured loan. This type of loan is great because it provides you with the opportunity to gain finance when you otherwise might not be able to get it. Perhaps you are looking to purchase a new car or finance home renovations. Secured loans provide you with the opportunity to do just this.

While secured loans provide you with a great opportunity to receive finance, better rates and more flexible loan terms, there are some factors which must be taken into consideration. When applying for a secured loan, it is important to note that in order to obtain the finance, you will be required to provide a personal asset as collateral. This means that if you fail to abide by the terms of the loan agreement, for example by continually missing repayments, then the lender has the right to seize the asset.

Before legally seizing the asset, the lender must give you prior warning and notice, so you have the opportunity to honour the terms of your agreement and repay what you owe to avoid any seizure of assets.

Are You Struggling with a secured Loan?

If you do find yourself struggling to keep up with repayments then there is still room for negotiation. The Australian Lending Centre cares about its clients and always look at asset seizure as a last resort. First, we can look to refinance your loan, or even consider debt negotiation to try to find a more manageable solution to help you pay off your debt. Just like with any loan, make sure to budget carefully and be careful not to fall behind on repayments otherwise the consequences can be terrible. From bad credit to having your asset used as collateral repossessed, always keep on top of your debts. If you need debt help then click here.

secured personal loans in australia
unsecured personal loans australia

What assets may I be required to use as collateral?

Personal assets which can be used to secure a loan could include your house, car, or even jewellery. It is also worth noting that you will rarely be able to borrow more than the asset for which you provide as collateral is worth. So, if you need to borrow $10,000 but the asset you provide is jewellery worth $5,000 then you may have to add more valuable assets, or reduce the loan amount.

In some cases, for example if you need finance for a house or car, you can use the asset for which you are borrowing money for as the collateral item.

If you are looking to borrow money for the mortgage on a new home, then you can use this property as your security.

Benefits of secured loans

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Borrow Greater Amounts

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Usually Lower Interest Rates

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Loan Flexibility & Better Terms

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Longer Repayment Terms

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Bad Credit Loan Approval due to Less Risk

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Easier & Faster Loan Approval

Downside to secured loans

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Risk Losing Asset if You Default

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Longer Loan Term = More Interest

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Can't Borrow More That Asset Value

unsecured loans

no credit check loans to vital cash flow

What is an unsecured Loan?

Unsecured loans do not require any personal assets to be used as collateral to secure a loan. This means that while your risk to the borrowers goes up, the risk for you is minimal. If you fail to keep up with repayments and default on your loan agreement then you will not have any assets seized. However, your credit rating will still suffer, and you could end up being taken to court if you continually fail to comply with the agreed loan terms.

Because this form of loan is of greater risk to lenders, usually interest rates, additional fees, loan amounts and loan term lengths are far less favourable than that of a secured loan. Without a very good credit score it is highly unlikely that you will be approved an unsecured loan. If your credit score is good then lenders will have more trust in you to honour the agreement and will be more likely to approve your loan application.

What Sort Of Loans Are Unsecured?

Unsecured loans usually come with lower loan amounts, meaning these are best suited for things such as holidays, small home improvements, dental work and car repairs.

With an unsecured loan, you will still need to agree to a repayment contract, just as you would with a secured loan. This involves the repayment amount, length and interest rate associated with your loan. You are expected to honour this agreement, just as you would any other form of legally binding contract. Personal loans, credit cards and student loans are the most common forms of unsecured loans.

Benefits of Unsecured Loans?

Bad credit personal loans for holidays to the tropics

Downside to Unsecured loans

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Higher Interest Rates

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Shorter Terms = Higher Monthly Payments

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Smaller Loan Amounts

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Serious Impact on Credit If You Default

How to apply for a secured loan?

The process of applying for loans with bad credit is fast and efficient. Unlike traditional banks, private lenders require less documentation and offer more leniency. As a result, the process from applying to being approved and receiving funding can take a matter of days.

Click the “Start Your Application” button. It is on the top right in the menu.

Select the type of loan that you want by clicking the button with the icon.

Step 3: Fill out the form icon

Continue through the form and follow through to the upload document prompts.

Step 4: Receive your money fast icon

If approved, the funds could be transferred to your account as little as 72 hours.