Not everyone is willing to pay the extra interest on the unsecured loans. Also, under the unsecured loans plan, you get little money as loan. This amount may not be able to meet your needs. You can go for short term secured loans in this case. Short term loans are just like the unsecured loans for short terms, the only difference being that you place collateral to avail the loan. The advantage of going for the short term secured loans is that you can ask for a higher amount of money. For normal loans, you can get the loan approved to an amount equivalent to the value of your asset. But as these loans are for a short period only, you avail only a portion of the asset’s value. Based on your repayment capacity, some money lenders may also offer you the full amount. Another advantage when you apply for secured loan is that you get to pay reduced rate of interest. Of course the interest will be a bit higher as these are the short term loans . But considering the fact that you get money within 36 hours, the interest rate is feasible. Short term secured loans can get you up to $70,000 which you have to repay within some weeks to few months. If you have a strong credit record, you can get extension on the repayment period. While the credit score has no role in these short term loans, you may be charged some extra interest in case your credit score is very poor as the risk is very high for the lender. On the other hand, if you try to get a secured loan from the local banker, you have to make several rounds to the bank without any assurance that your loan will be approved. At online money lenders the loan approval rate is more than 99.5 per cent, which means almost all applications are approved.
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