Looking for a personal loan in Auckland?
Based in Auckland, Speedy Loans is a New Zealand owned & operated Finance Brokerage based in Auckland. We have been in business for over 10 years and we are a Registered Financial Service Provider.
Whether it is for that special occasion, a trip overseas to watch the All Blacks win, a funeral, car repairs or any other reason that may require some extra cash fast, we can help make it happen.
Click here to apply for a quick and easy loan in Auckland
What are the types of loan available to me?
A secured loan is a loan in which the borrower pledges some asset (e.g. a car or property) as collateral.
A lender placing a charge on the Personal Property Security Register is a very common type of debt instrument used by many individuals to secure personal loans that may be for any purpose.
The financial institution or lender lodges the charge on the register which remains there until the loan is repaid in full.
If the borrower defaults on the loan the financial institution would have the legal right to repossess the vehicle and sell it, to recover loans owing to it.
In some instances a loan taken out to purchase a new or used car may be secured by the car, in much the same way as a mortgage is secured by housing. The duration of loan period is considerably shorter – often 3 to 5 years. There are two types of car loans, direct and indirect. A direct car loan is where a financial institution gives a loan directly to a consumer. An indirect loan is where a finance broker or a car dealership acts as an intermediary between the bank or lender and the consumer.
Unsecured loans are monetary loans that are not secured against the borrower’s specific assets.
Although they are described as Unsecured Loans many lenders will register a General Security Agreement on the Personal Property Security Register which typically covers the borrower’s present and after acquired assets.
These loans may be used available from financial institutions under many guises or marketing packages and may be:
- Credit Card Debt
- Personal loans
- Bank Overdrafts
- Credit Facilities or Lines of Credit.
The interest rates applicable to these different forms o may vary depending on the lender and the borrower. Interest Rates on unsecured loans are nearly always higher than for secured loans, because an unsecured lender’s options for recourse against the borrower in the event of default are severely limited. An unsecured lender must sue the borrower, obtain a money judgement for breach of contract, and then pursue execution of the judgement against the borrower’s unencumbered assets (that is, the ones not already pledged to secured lenders). In insolvency proceedings, secured lenders traditionally have priority over unsecured lenders when a court divides up the borrower’s assets. Thus a higher interest rate reflects the additional risk that in the event of insolvency, the debt may be uncollectable.
Loan in Auckland
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