For many operators, granting high credit amounts can be a little tricky – after all, what guarantee do they have that the requested amount will be returned?
As a strategy, they add fees to deal with the costs of the concession, but even so, there is the possibility that some default will occur. In this case, modalities such as a secured loan are of great benefit to both sides.
However, this category is not very popular and, despite offering good interest rates, many still do not know it. In this text, we will explain what types of secured loans are and how they work. Follow!
What are the types of secured loans?
The two types of collateralized loans best known in the Brazilian market are the vehicle and property collateralized loan, also known as vehicle or property refinancing. Both have interesting interest rates and much longer terms than the other credit grants offered by the institutions.
Although attractive to the consumer, we emphasize that these loans are ideal for those who do not have access to payroll loans and need a high-value concession. Next, understand better how they work.
This type of financing is also known as fiduciary sale, home equity or a secured loan. Its main aspect is that the interested party offers his property as a guarantee of payment. However, it must be made clear that this is not the same thing as the mortgage.
In this case, the property is not entirely in the name of the institution. To be able to carry out the collection in case of default, the bank will have to recover the property and carry out the entire process in a judicial manner, which is not very advantageous because of the bureaucracy. For this reason, today, the mortgage is no longer used in Brazil.
What do you need?
When requesting interest in making this loan, the institution will probably ask to perform a simulation. This is an important step for both sides, in this way, it is possible to confirm whether the interested party is able to deal with the loan.
Then, it will be necessary to complete registration and send a copy of the following documents:
- proof of marital status, residence, and income;
- property registration;
- IPTU booklet.
What are the advantages?
The first advantage of this modality is its low-interest rates. This is because the asset used as collateral has a high value, which ends up providing security to the banks.
To give you an idea, the rates offered in this concession are lower than in other types of credits, such as personnel and payroll loans.
The second big advantage is the payment terms. Most institutions manage to give up to 20 years for the debtor to settle the debt.
Another interesting point is in the amounts made available, which are generally over R $ 20 thousand and can cover up to 60% of the property value.