I was planning to take a secured personal loan and to know about the loan details; I researched online. From that, I came to know that collateral needs to be offered for personal loans. So, what can be used as collateral for a personal loan? Well, from what I have learned online, a bunch of things can be offered as collateral, but the items should be of equal value or close to the loan.
What can be Used as Collateral for Personal Loan?
One of the main reasons for collateral is to ensure that the lender will keep the item to make up for their lost revenue in case the borrower fails repaying the loan. Here are a few examples that can be used as collateral for a personal loan.
Vehicle (Car, Bike)
Home
Savings
Investment Account
Future Paychecks
Art
Jewellery
And that’s it. These are things you can put as collateral. I hope this answers your query about what can I use for collateral for a personal loan.
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Hello friend. The collateral for a personal loan can be several assets, ranging from immovable property to any vehicle you own privately. When I took a loan by giving my car as collateral, I found out that there were other options available, as well. So, let me take you through them one by one.
Which are the Assets that can be used as Collateral?
You can give a number of assets as collateral when taking a loan. The most common types are:
Commercial and residential properties
Valuables and collectables
Privately owned vehicles, such as cars and bikes.
Any future payments from your customers
Your insurance policies
Any investments made in the form of bonds, FDs, SIP's, etc.
Machines or any other sort of equipment
Here, banks categorise these assets into two types. One is immovable property, which includes the commercial and residential properties. Whereas, the second is liquid security, which comprises investments such as SIPs, shares, etc.
How much Collateral is Needed for a Personal Loan?
There is no specific amount of collateral, which is needed to apply for a personal loan. Actually, the collateral you need to offer varies based on your CIBIL score, the lender, the amount of money you would like to borrow as a loan, and lastly the type of asset you own.
I would like to rest my answer here. I hope you’re now aware of what can be used as collateral for a personal loan.
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Authors Of The Question
What can be Used as Collateral for a Personal Loan?
elakh
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2 Answers
1 Year
2023-12-04T11:58:52+00:00 2023-12-04T11:58:52+00:00Comment
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