Your water heater just broke in your house. Your transmission went out in your car. You have unexpected bills, and now you are looking for a way to pay for them. In your search, you came across information on secured loans and unsecured loans, but you would like to better understand what they are. At MaxLend, we want to help you make informed decisions. Here we’ll discuss what a secured loan is and some benefits and drawbacks of secured loans.
A secured loan is a loan that requires collateral. Typically collateral refers to an asset that can be used as security for the bank in the event that a borrower cannot pay back a loan. Car loans and home mortgages are great examples of secured loans that banks give. When a secured loan like one of these goes into default, meaning it doesn’t get paid back, the lender may take ownership of that collateral.
Benefits and Drawbacks of Secured Loans
As with many things in life, there are both benefits and drawbacks to secured loans. Below we’ll go over things to think about if you are looking for same-day funding.
Benefits of Secured Loans
Banks take lower risks when the loans are secured because they know that there is something of value available to them. This adds a benefit in taking a secured loan: You may be able to borrow more money. Additionally, when there is collateral to back a loan, lenders might provide either longer repayment terms or lower interest rates compared to other, unsecured loans.
Secured loans are great options for cars, homes, and other similar items. When you are ready to take out a loan, make sure to do your research to see if a secured loan or an unsecured loan, such as the unsecured loans offered by MaxLend, would be best for you.
Drawbacks of Secured Loans
Though secured loans are a great option in some situations, they aren’t always the best choice when looking for quick funds. If you don’t have any assets or collateral, you might not qualify for a secured loan. Additionally, a lender might limit how you can use the money that you borrow. If you take out a secured loan to buy a car, you probably won’t be able to use that money to help pay for the water heater that just broke. Also, secured loans may take longer to get funded than unsecured loans.
We understand that if you need to borrow money, you can’t always afford to wait. At MaxLend, we offer quick installment loans, with same-day or next-day funding.* So whether you are looking for a loan to pay for repairs to your home or car, veterinarian bills, or if you need money for another emergency, a quick installment loan from MaxLend might be able to help.
You can apply directly at our website to find out if you qualify for an unsecured loan from MaxLend of up to $3,000. Or feel free to call us at 877-936-4336. We can give you more information on the personal loans offered by MaxLend, including same-day loans. You can get in touch with us 24/7.
*Same Day Funding is available on business days where pre-approval, eSignature of the loan agreement, and completion of the confirmation call, if a call is required, have occurred by 11:45 a.m. Eastern Time and a customer elects ACH as payment method. Other restrictions may apply. Certain financial institutions do not support same-day funded transactions. When Same Day Funding is not available, funding will occur the next business day.
The content on this site is for informational purposes only and is not professional financial advice. MaxLend does not assume responsibility for the information given. All information should be weighed against your own abilities and circumstances and applied accordingly. It is up to readers to determine if this information is safe and suitable for their own situations.
MaxLend, is a sovereign enterprise, an economic development arm, and instrumentality of, and wholly-owned and controlled by, the Mandan, Hidatsa, and Arikara Nation, a federally-recognized sovereign American Indian Tribe. (the “Tribe”). This means that MaxLend’s loan products are provided by a sovereign government and the proceeds of our business fund governmental services for Tribe citizens. This also means that MaxLend is not subject to suit or service of process. Rather, MaxLend is regulated by the Tribe. If you do business with MaxLend, your potential forums for dispute resolution will be limited to those available under Tribal law and your loan agreement. As more specifically set forth in MaxLend’s contracts, these forums include an informal but affordable and efficient Tribal dispute resolution, or individual arbitration before a neutral arbitrator. Otherwise, MaxLend is not subject to suit or service of process. Nothing in this website is intended to waive or otherwise prejudice MaxLend’s entitlement to these protections. Neither MaxLend nor the Tribe has waived its sovereign immunity in connection with any claims relative to the use of this website. If you are not comfortable doing business with sovereign instrumentality that cannot be sued in court, you should discontinue the use of this website.