Money Under Collateral

Usually banks provide such a service as money on bail, only on the security of some valuable property. The bank can sell this collateral if the borrower can not repay the loan in time. From here it follows that it provides the bank with loan coverage guarantees if the bank is not sure of the ability and ability of its customer to pay its debts.

The property given on bail must have high liquidity, that is, be easily sold at a high price, or at least at a price close to the market price. Usually banks take in pledge:

• Property (this is most advantageous, since in this case the bank takes the lowest interest on the loan, as it is formalized according to the rules of the mortgage);
• Means of transport;
• As well as banks can take on security securities and deposits (bank deposits).

Most often, the money on bail is issued if the amount required is not less than 500 thousand rubles. Usually for the purchase of real estate, for which for any reason it is impossible to issue a mortgage, or to purchase a vehicle. The value of your mortgage should be higher than the amount of the loan granted to you, usually not less than 20%. In addition, than this difference is higher, the more chances that the bank will give you a loan, since it is at the same time less risky.

More often than not, money is taken on bail by businessmen on the development of their own small business, since targeted loans are much more expensive and harder to obtain than secured property. Most often, this type of loan takes about a month.

Similarly, the borrower should have, so to speak, a clean conscience, his biography. If the bank finds any flaws in it, the bank may not give a loan without additional conditions.

The money on bail is registered in the bank's offices according to the already indicated scheme. You fill out a questionnaire or application for a loan, then if you meet the requirements of the bank, then it conducts an inspection against you.

Before you apply for a loan secured by a real estate or vehicle, you must conduct an independent evaluation, and then insure them against damage or destruction. At the same time, these procedures, insurance and assessment, must be paid directly by the borrower.

Money on bail is the longest procedure for issuing loans, than other types of loans.

All the terms of the loan on bail and its repayment are discussed in the loan agreement. The main features of this loan is directly the availability of the collateral itself and additional actions related to its execution. This makes this type of loan less operational and more risky for you, since if you can not pay off your debts to the bank, then it is completely right to take away your previously pledged property.

But it is these features that give this type of loan an undoubted and huge plus, because the rate for such loans is very low, compared to others, at least a half times, except for a mortgage.

Many people who took a large amount and for a long time believe that it is money on bail is the most profitable option.