Secured Personal Loans

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Secured personal loans are a popular and reliable form of personal finance in New Zealand. You must use a personal asset of considerable value to secure the loan.

The great news is you can use a secured personal loan to finance almost anything. The security offered on the loan allows you to access higher loan limits and lower rates from most loan providers, which basically means you can borrow more and pay less to do so.

What is a secured personal loan?

A secured personal loan is a type of personal loan where you offer the lender an asset to use as collateral on the loan amount:

  • You must legally own the asset and cannot sell it while it acts as security
  • The asset has to have sufficient value to secure the amount you want to borrow
  • The lender has to approve the asset as security on the loan

You can use an existing asset or an asset you purchase with the loan amount, provided it meets the above criteria. If you are unable to meet your repayments on the loan, the lender may take possession of the asset as the final step of reclaiming their lost funds.

You can qualify for a secured personal loan in New Zealand if you are:

  • 18 years or over
  • A permanent NZ resident or hold a work permit or visa allowing you to reside in New Zealand
  • Currently employed with a sufficiently stable income to repay the loan amount

If you meet the basic eligibility for a personal loan, you will then need to compare lenders and assess their individual approval criteria. Many lenders offer secured personal loans in New Zealand, including specialist secured loans for specific purposes at competitive rates.

If you meet the standard qualifying criteria for a secured personal loan, you can calculate how much you can borrow and compare lenders to find the best loan offers available in New Zealand before applying for a loan.

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Why get a secured personal loan?

Secured personal loans are one of the most common types of personal finance in New Zealand, and are offered by most lenders due to their low risk and simple approval process.

4 Common Reasons To Get An Secured Personal Loan:

1. You can borrow more with a secured personal loan

A secured personal loan lets you borrow anywhere up to $100,000, depending on the asset provided as security. This is often twice the amount you can borrow with an unsecured loan, which offers greater potential uses for mid-to-high range loan amounts. 

2. You get a better rate with a secured personal loan

Secured personal loans also offer a sense of security to the lender in peace of mind. This is reflected in better loan offers, which includes significantly lower interest rates than unsecured loans. 

A better rate often translates to lower repayments, both regularly and throughout the lifetime of your loan, making it easy and quicker to repay. 

3. You can get a secured personal loan if you’re self-employed

If you’re self-employed, it can be difficult to get approved for a loan by your bank, especially if you can’t provide considerable paperwork to support your application.

Secured personal loans are easier to approve by most lenders, with many specialist and non-bank lenders offering simple self-employed loan applications.

4. You can get faster approval with a secured personal loan

As secured personal loans are quick and easy to approve, you can often apply for a secured personal loan and get approval on the same day, with the money available in your account within a few days.

Approval speed on personal loans will depend on your personal credit history and the lender approval process.

How to use a secured personal loan

A secured personal loan can be used for almost anything, which makes them ideal for funding larger expenses at lower rates. This can include:

You can use a personal loan for business expenses, though even if you are self-employed there are a number of business loan products to consider first. 

If you’re considering purchasing a vehicle, you might find specific car loan products more suited to your loan needs.

See If You Qualify For A Secured Personal Loan

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