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What Is A Secured Loan?

Checking-HistoryFinancial institutions, especially these days, prefer secured loans over those that are unsecured. As the name suggests, a secured loan is one that offers an asset as a form of collateral in exchange for the opportunity to borrow money. There are several types of secured loans, mortgages and auto loans being the most popular. There are also lesser-known secured loans, such as car title loans in which a vehicle owner uses his car or truck as collateral for a loan.

 

A secured loan is usually the best way to obtain a large amount of money. Lenders do not like to loan large amounts of money without some sort of assurance that the money will be repaid. When a home is used as collateral, for instance, it is a pretty safe guarantee that the borrower is going to do everything in his power to repay the loan. If not, the lender can take possession of the home and sell it to try and recover its losses.

 

An auto loan is much the same as a mortgage in that an asset, a vehicle, is used as collateral. A borrower is much more likely to repay the loan when he or she faces the threat of losing their vehicle. Like mortgage loans and other secured loans, auto loans usually offer lower interest rates, higher limits on the amount that can be borrowed, and longer repayment terms.

 

While auto loans, mortgage loans, and home equity loans are the more popular types of secured loans, the car title loan is also a type of secured loan. A person who owns a vehicle that has been paid off (or in some cases, nearly paid off) can use the vehicle’s title as collateral for a loan.

 

At Embassy Loans, one of Florida’s leading consumer finance companies, borrowers can fill out an application to begin the process. They will need documentation to prove their identity and residency and must possess a legal copy of the title. Once the application is complete and everything has been verified, the vehicle is assessed for value.

 

Title loan companies normally use blue book values for vehicles, and then will usually lend between 30 and 50 percent of that value. In the case that a borrower defaults, this gives the lender a chance to recover most, if not all, of its losses by selling the vehicle.

 

One of the great things about car title loans is that they are processed very quickly. Most are completed in an hour since there are no lengthy credit checks or other paperwork to slow the process down. As a result, car title loans are becoming more popular.

 

 



Embassy Loans is a leading provider of auto title loans since 2005

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Embassy Loans Inc. is licensed under the “Florida Consumer Finance Act” and as such Embassy Loans is exempt from any licensing requirements under the “Florida Title Loan Act” to the extent that any of Embassy Loans’ activities involve the making of a loan of money to a consumer secured by bailment of a certificate of title to a motor vehicle.

Monthly Interest Rates range from 1.5% to 2.5% (18% to 30% APR), with 15-18 Month Terms.

No Prepayment Penalties!

Embassy Loans uses “Title Loans” for advertisement purposes only and provides auto equity loans. Embassy Loans Inc. is licensed under the “Florida Consumer Finance Act” under Florida Statute 516 and as such Embassy Loans is exempt from any licensing requirements under the “Florida Title Loan Act” to the extent that any of Embassy Loans’ activities involve the making of a loan of money to a consumer secured by bailment of a certificate of title to a motor vehicle.

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Frequently Asked Questions

What is an Auto Equity Loan?

An auto equity loan, sometimes known as a car title loan or a car equity loan, is a type of loan that allows you to borrow money by using your vehicle as collateral. The loan is secured by your vehicle, meaning you agree to use the equity in your car to back the loan. 

What is an Unsecured Personal Loan

An unsecured personal loan is a loan that does not require collateral. Funds are provided based on your credit worthiness and your ability to repay. 

What Is the Credit Builder Program

The credit builder program is designed to help individuals establish or improve their credit score with the primary purpose of building a positive credit history through regular payments.

Can i have more than one Loan at a time?

Embassy Loans can only extend one loan at a time and it’s advisable to start with one and focus on making payments in a timely manner to prevent default.

What happens if I miss a payment?

Missing a payment can have negative consequences, including late fees, a drop in your credit score, and potential default on the loan. Consistent, on-time payments are crucial to benefit from the program.