Small secured loans or secure personal loans are for individuals who are in an unreliable financial state. Once you don’t own a home of yourself, you are not eligible for an unsecured personal loan. The only option that you will be left with then will be secured personal loans.
In this case, the best option is a title loan company that lends you money against your personal car as well. The car is entitled on their name while the custody remains with you. You use the car as any owner normally does but the car is under the name of the title loan company from where you borrow the loan. The car must be completely and clearly owned by you if you are applying for a personal loan against it. The maximum value of personal loan against a car could be no more than a few thousand dollars. In any case, the amount of money given to the borrower does not exceed 50% of the cars market worth keeping in sight the value of the car and the condition. These loans are given for the period of 30 days with a markup of 25% in the term making the annual percentage rate (APR) rise to 300%. In case the borrower is not able to pay the loan on time and renew for a new term, the company can take hold of the car if they wish to and if, even then, the loan is not paid, the company has rights to sell the car and generate their money from the price received by selling the car.
The simplest and the lightest of these loans cash advance or check cashing stores. Here, the borrower can get a maximum of £500 worth of credit. You write the lender a personal check of the amount that you borrowed plus an additional fee that usually ranges between £20-£40 per £100 loan given. The loan is received in form of check or cash. The lender holds your check until your payment date. You can pay off the loan or renew the term by paying the fee only. Once you fail to do both, the lender deposits your check and you are penalized by two additional fees, one from the lender and the other from the bank for having insufficient funds.
These small secured loans are designed to meet the urgent requirements of yours in order to meet the necessary expenditures. Though these are very limited scale loans but the percentage of interest over on them is huge. About 25% per month in case of the title loan companies where the annual percentage rate rises to 300% and 20-40% per week in the cash advance loans rising to a total of 480-960% in terms of annual percentage rate.