To get a guaranteed loan, a person must first have a form of valuable collateral. Valuable collateral cab be a car, house, mobile home, jewelry, equipment, real estate and anything else that will have a value close to the amount of the loan that the person is asking for. Collateral loans can be easy to get regardless of a persons credit. To get a guaranteed loan, a person must first decide on the valued item that he or she wants to use as collateral. Learn how to get a guaranteed loan by following the steps below.
- Decide on how much the loan amount needs to be.
- Decide on the item that is going to be used for collateral to get a guaranteed loan.
- Look into how much that the valued item is worth. The item that is going to be used for collateral must hold a value of or near the loan amount.
- Find the title or the registration of the valued item.
- Take the valued item to a bank or lending institution.
- The application then needs to inform the bank or lending institution that he or she would like to get a guaranteed loan by using a valued item as collateral.
- The loan officer will then take down the applicants personal information and make sure that the valued item matches the loan amount. Fill out the provided guaranteed loan application and answer any questions that the bank or lending institution has.
- Once the loan officer has decided on the valued item, he or she will let the applicant know if it meets the qualifications of a guaranteed loan. If so, the loan officer will then approve the guaranteed loan amount.
- The loan officer will then either cut a check for the amount of the loan or have the loan deposited into the applicants account.
- Repay the guaranteed loan as agreed by the applicant and the bank or lending institution.
The bank or lending institution will hold the title, registration or the valued item itself until the loan amount is repaid as agreed upon by the applicant and the bank or lending institution. If a guaranteed loan is not repaid as agreed upon, the bank or lending institution can come and take the valued item. Whether it is a car, jewelery or real estate it does not matter. If the loan is not repaid, the person will lose the valued item. The bank or lending institution will win regardless. The financial institution wins if the applicant pays back the loan and the financial institution wins if the applicant does not repay the loan because they have a source that holds the same value as the guaranteed loan.