Security Loan Finance Companies – How to get it?

Security Loan

What are secured loans?

Basically secured loans are funds provided against offered collateral. Usually entrepreneurs who wish to invest in small businesses look for secured loans. Secured loans can be difficult to obtain as investing into new start-ups or a small business can be risky than to offer funds to an established or a large business. 

Widely there are two types of loans; secured and unsecured.

To obtain a secured loan, the borrower requires mortgaging an asset or any commercial property, which the bank can claim in the future if the loan is failed to be paid off. Such loans are easier to obtain due to its lower interest rates. This is because the lender has already received the mortgage to get the funds way back in a way. Another advantage is that the borrow limits are higher also provides longer repayment period.

Some examples of secured loans are:

Mortgaging

Home Equity

Auto Loan

Boat Loan

Recreational Vehicle Loan

While unsecured loans are those which have no offered collateral towards the lender. Instead, this includes credit cards, students’ loans or a personal loan. The risk factor is higher for the lender as there is no asset to be recovered if the loan amount is failed to be paid. An unsecured loan is offered on the platform of pure belief on the borrower because of the financial status and the resources that is held. It’s widely believed that the borrower is judged on the basis of five C’s i.e. Character, Capacity, Capital, Collateral and Conditions. These are the judgements used to assess a borrower capacity to pay back the debt.

Some examples of unsecured loans are:

Small Business Loans

Big Business Loans

Credit card

Personal Loans

Student Loans

Home Improvement Loans

Worried and confused about getting a secured loan!

Choosing a bank or a Credit Union isn’t easy when it comes to trust and loyalty. A guide out of a source can help a finder to reach an ultimate selection to simplify ones process of acquiring it. There are thousands of online lenders, banks and credit unions that provide loans and funds. The bank that provides the lowest interest rate is considered to be the best to be opted. However, a short-listing can help the finder to understand the strength and weakness of the company before opting it. To make this helpful, few companies are mentioned below that stand top in the market for correct funding.  According to a source, the below listed companies have had done well in funding in the recent years and gained the trust of the borrowers.

The well known and top banks for secured Loans are Wells Fargo, Citizens  Bank, PNC Bank, Navy Federal Credit Union, America First Credit Union, etc. However, these banks maintain a privacy factor, due to which you need to put in your personal details, business information and zip code to get the complete information.

Top picksRecommended CompanyAPR*
Best in overall performanceLightStream2.49% to 19.99%
Best BankPNC Bank5.99% to 25.49%
Best Credit UnionPentagon Federal Credit UnionStarting from 5.99%
Best for Bad CreditOneMain Financial18.00% to 35.99%
Best for Good CreditSoFi5.99% to 18.85%
Best for Debt ConsolidationMarcus by Goldman Sachs6.99% – 19.99%

The Process of application might differ in case of different banks. The following tabular information with help you make quick decision.

Banks/LendersRatingEst. APRMin. Credit Score
U.S. Bank Personal Loan4.0/5 Best for Secured loans from banks  5.99 – 17.99%  660
First Tech Credit Union Personal Loan5.0/5Best for Secured loans from credit unions  6.70 – 18.00%  None  
Navy Federal Credit Union Personal Loan4.0/5 Best for Secured loans from credit unions  7.49 – 18.00%None  
OneMain Financial4.0/5 Best for Secured loans from online lenders  18.00 – 35.99%  None
Upgrade5.0/5 Best for Secured loans from online lenders5.94 – 35.47%560
Oportun3.0/5 Best for Secured loans from online lenders  27.74 – 35.95%  None

SoFi
4.6/5 Best for Secured loans from online lenders  5.24% to 19.88%Not Disclosed
PenFed Credit Union    4.6/5 Best for Secured loans from online lenders  5.99% to 17.99%650
Marcus by Goldman Sachs  4.3/5 Best for Secured loans from online lenders  6.99% to 19.99%670
LightStream    4.3/5 Best for Secured loans from online lenders  2.49% to 19.99%670

Payoff
4.3/5 Best for Secured loans from online lenders  5.99% to 24.99%600

Upstart
4.3/5 Best for Secured loans from online lenders  6.76% to 35.99%650

Best Egg
4.2/5 Best for Secured loans from online lenders  5.99% to 35.99%640
Earnest    4.2/5 Best for Secured loans from online lenders  As low as 2.49%Not Disclosed

TD Bank
4.2/5 Best for Secured loans from online lenders  6.99% to 21.99%Not Disclosed

U.S. Bank
4.2/5 Best for Secured loans from online lenders  5.99% to 18.49%660

 

Best for loans of up to $100,000 with no fees:

1.       SoFi is the short form of Social Finance. Its offers personal loan up to $100,000.  It operates nationwide and is known for offering loans with no fees.  SoFi also offers student loans, student loan refinancing, home loans and small business financing besides personal loan.

Some benefits of it are:

  • The lender does not charge origination, prepayment or late fees.
  • Loans of up to $100,000 are available.
  • Co-borrowers are accepted.
  • Borrowers become members and get special benefits.

SoFi Personal Loans Are Best for:

For those who have very good to excellent credit.

For those who don’t want to pay loan fees

And for those who want to apply with a co-borrower

2. PenFed Credit Union

PenFed Credit Union serves members of all branches of the U.S. military, employees of the Department of Defence and Department of Homeland Security, eligible veterans and retirees, and their families. However, military association is not required for membership. The credit union offers personal loans for eligible members and eligible co-borrowers in all 50 states.

Some benefits of it are:

  • Terms extend up to 60 months.
  • There are no origination fees.
  • Borrowers can get as early as next day access to funds upon approval.

PenFed Credit Union Personal Loans Are Best for:

  • For those who are PenFed Credit Union members or are eligible to join.
  • For those who want to avoid loan origination fees.
  • For those who want to borrow up to $20,000.

3.       Marcus by Goldman Sachs

           Marcus is the consumer bank and lending arm of investment bank Goldman Sachs. Established in 2016, the lender offers personal loans of up to $40,000.

            Some benefits of it are:

  • Marcus does not charge any fees on its personal loans.
  • Borrowers can adjust their payment due date.

Marcus by Goldman Sachs Loans Are Best for:

  • People who want a no-fee personal loan
  • People who want to complete the entire loan process online
  • People who don’t need a co-signer

LightStream 

LightStream is the national online consumer lending division of SunTrust Bank, which recently became Truist Financial after merging with BB&T.  It’s online personal loans can be as large as $100,000 and used for almost every need.

            Some benefits of it are:

  • More than 30 different loan uses are available.
  • Loans of up to $100,000 are available.
  • LightStream has no origination, prepayment or late fees.

LightStream Personal Loans Are Best for:

  • For those with good to excellent credit.
  • For those who want a lender with good customer service ratings.
  • For those who don’t want to pay loan fees.

Payoff

Payoff is a company that offers personal loans designed to consolidate credit card and other high-interest debt. It also operates in all but three states and provides loans of up to $40,000.

            Some benefits of it are:

  • Borrowers don’t face prepayment or late fees.
  • Borrowers can get preapproved with no hard credit check.
  • Some borrowers with fair credit may be eligible.

Payoff Personal Loans Are Best for:

  • For those who need to consolidate high-interest debt.
  • For those who have at least a 640 FICO credit score.
  • For those who want to complete the entire loan process online.

Where to get a secured personal loan

Secured loans from banks: One of the nation’s largest banks, U.S. Bank allows customers with assets including deposit accounts to use them as collateral to qualify for a loan. Borrowers that pledge savings accounts typically cannot touch that money for the duration of the loan.

Secured loans from credit unions: Some credit unions offer CD-secured loans, typically to build credit or get cash quickly at a lower rate than other types of loans. Credit unions are a good first stop for most types of loans, because they consider borrowers with poor credit and provide affordable loans.

Federal credit unions offer a maximum annual percentage rate of 18% to their members, although there may be extra application fees.

Secured loans from online lenders: A secured loan from a reputable online lender will carry a maximum APR of 36%. The rate, the amount borrowed and the length of the loan will be based on both your credit and the value of your collateral.

Some lenders let you apply for a secured loan upfront, but others may show you the option only after you’ve tried applying for an unsecured loan.

Most online lenders let you check your rate on an unsecured loan without affecting your credit, so it doesn’t hurt to take the steps to pre-qualify for an unsecured loan at multiple lenders. You can use NerdWallet’s lender marketplace to compare rates in one place.

You can end your confusion by understanding the easiness of application process.

  1. PNC Bank– With a PNC Bank Secured Loan, you can use your existing business assets, or assets you’re about to purchase, to secure business capital at competitive rates and flexible terms for expanding your business.
  • Some benefits and features are:
  • Save money- Use your business assets to secure lower loan rates and longer terms compared to unsecured loans.
  • Cover your borrowing needs- Availability of wide range of loan amounts.
  • Easier payment processing- Your monthly payments automatically get deducted from your business checking account.
  • Convenient terms- You need to select a fixed or variable rate with a term between 2 and 7 years.
  • How to apply?

PNC helps make your business lending experience easy. Your PNC Business Banker will walk you through the lending process and help you gather all necessary information to apply. You can get the convenience of applying online, over the phone, or at any PNC Bank branch – choose the way that is convenient to you.

  • Apply online using our secure application (You must be a PNC Bank Business Banking customer to apply online.)
  • By phone: 1-800-762-5684 (Mon – Fri: 8:00 a.m. to 6:00 p.m. EST)
  • In person at a branch

Important Legal Disclosures and Information

  • All loans and lines of credit subject to credit approval and require automatic payment deduction from a business checking account. Additional fees may apply.
  • Prime Rate means the highest prime rate published in the “Money Rates” section of the Wall Street Journal for the last day of the preceding calendar month.

These well-performing banks and companies doesn’t display the rates for online surfers, rather asks to login or apply with all your personal details to get the required information;  for which one needs to put in all the personal details including zip code to get detailed data of the rates. Those companies that openly share there fixed rates under any condition have also been listed down for your reference to make your search uncomplicated.

Looking for secured loan, here are some of the banks and credit unions that offer them:

Below mentioned are some of the banks and credit unions and their offers:

1Amoco Federal Credit Union                  Up to 30 years 3.605% – 4.140%
  Up to 20 years5.870% – 6.084% 
2America First Credit Union30 Year Fixed3.2%
  20 Year Fixed2.854%
  15 Year Fixed2.509%
  10 Year Fixed4.954%
3Alliant Credit Union30 Year Fixed3.087%
  20 Year Fixed2.879%
  15 Year Fixed2.391%
4BB&T Bank30 Year Fixed3.4589%
  15 Year Fixed2.6733%
  30 Year Jumbo3.3081%
  30 Year FHA4.2435%
5Coastal Credit Union30 Year Fixed3.412%
  15 Year Fixed2.690%
  5 Year Adjustable2.717%  
  7 Year Adjustable2.740%
6Randolph-Brooks FCU30 Year Fixed2.938%
  20 Year Fixed2.349%
  30 Year FHA3.163%
  30 Year VA3.341%
7Security Service FCU30 Year Fixed2.928%
  20 Year Fixed2.824%
  15 Year Fixed2.468%  
  10 Year Fixed2.385%
8State Employee’s Credit Union30 Year Fixed3.329%
  20 Year Fixed3.061%
  15 Year Fixed3.094%
  10 Year Fixed2.958%

However to get the proper procedure of applying these loans, we need to contact the branch online or physically. In online application the executive will visit your place guide you through the process.