Current Global Financial Service Market:


The current financial market is repositioning itself after the aftermath of the economic slowdown of 2007. This is going on throughout the globe not in isolated pockets.  Finance experts have been innovating new strategies to bring back the economy to its right pace. The banking sector is no exception. In fact, banks are the major source of funds and credit and are more reliable compared to the other providers. The recession that took place also had to do a lot with the financial sector. The collateral market also had to do something with the current scenario.
The 2007 housing bubble has made us to be on guard. The lending market offers two types of loans such as secured loans, and unsecured loans. Secured loan is obtained by pledging a property of the debtor, like a car, a house, land, jewels, or any other item at the time of lending, on which, at the point of the debtor defaulting, the creditor claims his amount. He can sell it, or take it as such after he makes sure that the property fetches him the amount equal to the loan. If it is insufficient, obtains a deficiency judgement.


Types of secured loans:
If the borrower defaults, the creditor can obtain the equivalent of his credit in four different ways such as

1. Mortgage loan where the security is a property
2. Nonrecourse loan  where the collateral is the only security or claims the creditor has against the borrower
3. Foreclosure, where the mortgaged property is sold to repay the debt
4. Repossession
Ease of obtaining loan:
Secured loans have become easy to obtain by virtue of the method itself. Here, the lender feels safe about his credit. The lender employs several ways to know about the credibility or the credit history of the customer, if satisfied, the approval rate is higher. It is also easy to know  the amount opted for, the duration of repayment etc.
The loan might be approved within 15 days after the surveyor gives a positive note about your credit rating and the value of your property.   A swift documentation process ensures that the agents come to your doorstep to collect all the data, and no hassles for the borrower. The customer is encouraged to ask for details as far as time of approval, amount approved, and time of repayment, cost of the loan etc.
The eligibility to obtain secured loan:
The applicant should be over 21 years of age, employed or running his or her own business, the income should be consistent and fixed, and owns a property to fall back on when unable to repay. Even with a poor credit rate, the loan can be had but at a higher rate of interest. It is equivalent to the risk that the lender has to take that determines the interest rate. Safer borrowers are charged low interest rates.
Speed of approval:
Information technology has enabled background check easier than before, simplified, and yields results within a few hours, within which the applicant is made to know whether it is approved or not. Some service providers get back to you within half an hour after a decision is made. The oft pledged property is a house which, the lender feels safe.
Secured loans market:
Secured loans marketers adopt the similar tactics worldwide, but the operations differ from country to country depending on the advice of the finance ministry and the health of the economy.  Here, safety of the country’s economy is paramount. It also differs from one service provider to other based on their respective firm’s policy.
A few tips for the borrower:
Before applying for secured loan, the seeker has to do a background check on the provider and refer to the testimonials of the previous customers. At this time of economic slowdown secured loans method provides the much needed feeling of safety and guarantee for both the parties.

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