With lower interest rates, secured loans are one of the favorite funding source for borrowers. The reason for lower interest rates in case of secured loans is the fact that lenders asks for a collateral as security against the amount financed. Examples of collateral used for secured loans are funds in the savings account, certificate of deposits, valuable property such as house or a commercial property, etc. It is important to know that the value of collateral should be equal to or greater than the loan value.

Following are some points worth considering when applying for a secured loan:

Your Financial Situation: Before applying for a secured loan, the first thing to do is to assess your financial situation. Figure out how much loan you need, suitable loan term, feasible EMI, etc.
Credit History: Once you have made up your mind to get the loan, check your credit history and see how it will affect your loan application. A good credit score increases your credibility.
Loan-to-Value: Assess the loan-to-value in order to know your borrowing capacity and the interest rate that will suit your financial circumstances. A lower loan-to-value translates into a better interest rate.
The Interest Rate: Inquire about the interest rates offered when looking for a secured loan. Ask the loan officers about suitable options and ways to secure a better rate.
The Term Of The Loan: The period over which you have to repay the loan also impacts the cost of the loan. A shorter period of repayment may lead to higher interest rate and vice versa.
Fees And Monthly Payment: When obtaining a secured loan, keep in mind that it involves various payments such as application fee, loan origination fee and cost of appraisal.
The Application Process: Credit Unions offer borrowers the choice of applying online. During the process, applicant is required to provide details such as the name, address, date of birth, income and employment status, etc.

Visit Greater Central Texas Federal Credit Union to apply for secured loans. The credit union offers secured loans on low interest rates to its members. For more information on how to apply for secured loans, visit: 3305 E. Elms Rd., Killeen, TX – 76542. You can also contact: (254) 690 – 2274.