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If you are a homeowner and need a large sum of money, the best option, which you can consider is secured loan. In secured loan, you are required to keep collateral with the lender, and this will let you to procure large sums of money and on competitive rate of interest.

Although, the market is full of lenders offering secured loan, but the difficulty lies in choosing the lender that suits your requirements. What, if the lender you choose doesn*t suit your needs? Nothing but, it will leave you to even worst condition. So before you choose the lender, consult credit counselor and also analyze yourself, your financial position.

How to analyze our financial position? It is a bit tricky. You can analyze, by asking yourself certain questions and evaluating on the basis of the answers of these questions. Such as:

*Determine your needs, that is, how much you need to borrow?

*How much can you arrange yourself?

*Can you afford repayments of loan?

*For how long you need to borrow?

*Are your needs urgent?

Try to avail, secured loan with low annual percentage rate (APR). Annual percentage rate can be defined as the sum of rate of interest and the cost involved in availing secured loan. Costs, such as legal cost, broker's fees etc. Lower is the cost, the cheaper is the loan.

The other factors, which makes loan cheap are:

*Type of security offered

*Equity in the collateral

*Amount being borrowed.

Give a thorough eye on small prints of the loan. Small print refers to the clauses of the loan agreement. Sometimes, it may consist of some hidden clauses, such as penalties on early repayments etc. Generally, the people are not aware of such hidden clauses but they come to know, after entering in the agreement, when nothing can be done. Because after entering into agreement, it becomes an obligation for a borrower to fulfill all the terms of the loan.

The best thing about secured loan is that if you are bad credit scorer, still you can avail secured loan. But the only difference will be that, you will be obliged to pay little higher rate of interest as compared to the person with good credit score.

Secured loan, being a common loan, almost every lender provide secured loan such as banks, financial institution, building societies. And, due to abundant lenders in the financial market, you will be able to procure funds on competitive rate of interest.