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As every person borrows money for their distinct purpose, so their financial needs also varies from each other. And they define low cost secured loan in their own distinct way, as for one low cost implies low interest rate and for some low rate implies flexible repayment period. But if we consider it generally then low cost secured loans implies the combination of various factors that is, low interest, flexible repayment period and favourable terms and conditions.

Low cost secured loan is available to both kinds of people either with good credit score or bad credit score. But, the person who make timely payment and have good credit score, are always being offered with competitive and low rate of interest. As said that low cost secured loan can also be availed by poor credit scorers with little high rate of interest, but still they can improve their credit score, which will help them in future while performing in the financial market.

Everyone who desires to procure funds through loan tries to find a loan with mere low rate of interest. But, they forget the fact of considering other factors. Sometimes the lender in order to make their profit offers low rate of interest to attract people and, it is also true that people get easily attracted towards them and they forget to consider the other factors such as terms and conditions. By offering lower rate of interest they include various hidden cost in the clauses which increases the cost of the loan. So, one is required to be cautious while dealing with the lender.

One of the most significant factors which the person is needed to consider is his repayment capability. That is, if the person finds that or have any doubt on his repayment capability, in such case he must avoid taking low cost secured loans. The reason behind this is, it carries risk on asset of being liquidated if the person misses any payment. Not only, it carries risk but also if such event happens then it also results in bad credit of a person.

Low cost secured loan, being a multi purpose loan, it can be used as per the desire of the person availing the loan. Low cost secured loan is the part of personal loans which is used for personal purpose. Some of its uses are illustrated below:

' Consolidating debts

' Buying a house

' Buying a car

' Home improvement

' Holidaying

' And, other miscellaneous expenses.

Thus, low cost secured loan enables the person to overcome their financial crisis.